Article Tags

You searched “Growth & Development”. Your tag search matches the following results:

Agriculture Infrastructure Fund

Why in News Agriculture Infrastructure Fund has crossed the eight thousand crore mark. The investment will give a boost to several agricultural...

29 Apr 2021 Growth & Development
Launch of Supply Chain Resilience Initiative

Why in News The Trade Ministers of India, Japan and Australia have formally launched the Supply Chain Resilience Initiative (SCRI). The SCRI aims...

29 Apr 2021 Growth & Development
Chandler Good Government Index

Why in News Recently, India has been ranked 49th in the Chandler Good Government Index (CGGI). Finland has topped the list. Key...

27 Apr 2021 Growth & Development
Startup India Seed Fund Scheme

Why in News Recently, the Government has launched the Startup India Seed Fund Scheme (SISFS). The Scheme was announced during the...

21 Apr 2021 Growth & Development
NEFT & RTGS Direct Membership for Payment System Operators

Why in News Recently, the Reserve Bank of India (RBI) has proposed to enable, in a phased manner, payment system operators to take direct membership...

17 Apr 2021 Growth & Development
Resurge in Covid Cases and Economic Recovery

This Article is based upon “A Looming Economic Crisis” which was published in the Hindustan Times on 15 April, 2021. It talks about how...

16 Apr 2021 Growth & Development
Research on Lithium Ion Battery Performance

Why in News Researchers from IIT Guwahati have developed a technique to improve the performance of rechargeable lithium-ion batteries, which power...

15 Apr 2021 Growth & Development
The Big Picture: Economic Recovery for India

Why in News Recently, the International Monetary Fund (IMF) upgraded its FY 2021-22 growth projection for India to 12.5% from 11.5% estimated in...

13 Apr 2021 Growth & Development
National Supercomputing Mission

Why in News The second phase of the National Supercomputing Mission (NSM) will be completed by September 2021, taking India’s total...

13 Apr 2021 Growth & Development
Potential of Lighthouses for Tourism: Sagarmala

Why in News The Union Ministry of Ports, Shipping and Waterways seeks to develop 65 lighthouses on public-private-partnership mode. Odisha’s...

12 Apr 2021 Growth & Development
Global Minimum Corporate Tax

Why in News The US Treasury Secretary has urged G20 nations to move towards a global minimum corporate tax. It is an attempt to reverse a...

12 Apr 2021 Growth & Development
Fall in International Crude Oil Prices

Why in News Recent fall in international crude oil prices has reversed a six-month trend of rising auto fuel prices which saw the prices of petrol...

09 Apr 2021 Growth & Development
Monetary Policy Report: RBI

Why in News The Reserve Bank of India (RBI) has released the Monetary Policy Report for the month of April 2021. Key Points Unchanged Policy...

09 Apr 2021 Growth & Development
World Economic Outlook: IMF

Why in News The latest edition of the International Monetary Fund’s (IMF) World Economic Outlook has raised its Financial Year (FY) 2021...

07 Apr 2021 Growth & Development
National Maritime Day 2021

Why in News Recently, the Ministry of Ports, Shipping & Waterways celebrated the 58th National Maritime Day (5th April). Maritime India...

06 Apr 2021 Growth & Development
PLI Scheme for Food Processing Industry

Why in News Recently, the Union Cabinet has approved the Central Sector Scheme - "Production Linked Incentive Scheme for Food Processing Industry...

05 Apr 2021 Growth & Development
Oil Import Contracts

Why in News Amid tensions with Saudi Arabia over oil production cuts, the Indian government has asked its state refiners (IOC, BPCL and HPCL) to...

03 Apr 2021 Growth & Development
India’s Merchandise Trade Deficit

Why in News Preliminary data released by the government showed that India's trade deficit in goods widened to USD 14.11 billion in March 2021 from...

03 Apr 2021 Growth & Development
4% Inflation Target Retained by Government

Why in News The Government of India has decided to retain the inflation target of 4%, with a tolerance band of +/- 2 percentage points for the...

01 Apr 2021 Growth & Development
Economic and Social Survey of Asia and the Pacific 2021: UNESCAP

Why in News A report ‘Economic and Social Survey of Asia and the Pacific 2021: Towards post-Covid-19 resilient economies’ has recently...

01 Apr 2021 Growth & Development

Warning (2): count(): Parameter must be an array or an object that implements Countable [ROOT/plugins/Drishti/src/Template/Element/rightsection.ctp, line 100]

Code Context


<?php if(count($updates)>0){?>
  <div class="updates">

$viewFile = '/var/www/drishtiias.com/public_html/plugins/Drishti/src/Template/Element/rightsection.ctp'
$dataForView = [
	'progress' => [],
	'bookmarks' => [],
	'notes' => [],
	'mynote' => [],
	'topdata' => [
		(int) 0 => object(Cake\ORM\Entity) {}
	],
	'searchdata' => [],
	'amonth' => 'August',
	'ayear' => '2021',
	'articles' => [
		(int) 0 => object(Cake\ORM\Entity) {},
		(int) 1 => object(Cake\ORM\Entity) {},
		(int) 2 => object(Cake\ORM\Entity) {},
		(int) 3 => object(Cake\ORM\Entity) {},
		(int) 4 => object(Cake\ORM\Entity) {},
		(int) 5 => object(Cake\ORM\Entity) {},
		(int) 6 => object(Cake\ORM\Entity) {},
		(int) 7 => object(Cake\ORM\Entity) {},
		(int) 8 => object(Cake\ORM\Entity) {},
		(int) 9 => object(Cake\ORM\Entity) {},
		(int) 10 => object(Cake\ORM\Entity) {},
		(int) 11 => object(Cake\ORM\Entity) {},
		(int) 12 => object(Cake\ORM\Entity) {},
		(int) 13 => object(Cake\ORM\Entity) {},
		(int) 14 => object(Cake\ORM\Entity) {},
		(int) 15 => object(Cake\ORM\Entity) {},
		(int) 16 => object(Cake\ORM\Entity) {},
		(int) 17 => object(Cake\ORM\Entity) {},
		(int) 18 => object(Cake\ORM\Entity) {},
		(int) 19 => object(Cake\ORM\Entity) {}
	],
	'tags' => [
		(int) 0 => object(Cake\ORM\Entity) {}
	],
	'title' => 'Article Tags'
]
$progress = []
$bookmarks = []
$notes = []
$mynote = []
$topdata = [
	(int) 0 => object(Cake\ORM\Entity) {

		'url' => 'https://www.drishtiias.com/careers',
		'title' => 'We are hiring Full Time Content Developers, to know more, please click here.',
		'type' => (int) 1,
		'date' => object(Cake\I18n\FrozenDate) {},
		'[new]' => false,
		'[accessible]' => [
			[maximum depth reached]
		],
		'[dirty]' => [[maximum depth reached]],
		'[original]' => [[maximum depth reached]],
		'[virtual]' => [[maximum depth reached]],
		'[errors]' => [[maximum depth reached]],
		'[invalid]' => [[maximum depth reached]],
		'[repository]' => 'news'
	
	}
]
$searchdata = []
$amonth = 'August'
$ayear = '2021'
$articles = [
	(int) 0 => object(Cake\ORM\Entity) {

		'article_id' => (int) 8265,
		'category_id' => (int) 21,
		'title' => 'Agriculture Infrastructure Fund',
		'description' => '<h3>Why in News</h3>
<p>Agriculture Infrastructure Fund has crossed the eight thousand crore mark. The investment will give a boost to several agricultural projects which will unlock value for farmers across the country.</p>
<h3>Key Points</h3>
<ul style="list-style-type: square;">
<li>It is a <a href="/daily-updates/daily-news-editorials/reforming-centrally-sponsored-scheme" target="_blank" rel="noopener"><strong>central sector scheme</strong></a></li>
<li><strong>Aim:</strong><br />
<ul style="list-style-type: circle;">
<li>To provide <strong>medium - long term debt financing facility</strong> for investment in viable projects<strong> for post-harvest management Infrastructure</strong> and community farming assets.</li>
<li>The funds will be provided for setting up of cold stores and chains, warehousing, grading and packaging units, e-marketing points linked to e-trading platforms, besides PPP projects for crop aggregation sponsored by central/state/local bodies.</li>
</ul>
</li>
<li><strong>Duration:</strong> Financial Year<strong> 2020 to 2029.</strong></li>
<li><strong>Features:</strong><br />
<ul style="list-style-type: circle;">
<li><strong>Eligible Beneficiaries:</strong><br />
<ul style="list-style-type: disc;">
<li>They are<strong> Farmers, <a href="/daily-updates/daily-news-analysis/linking-farmers-with-futures-market" target="_blank" rel="noopener">FPOs</a>, PACS,</strong> Marketing Cooperative Societies, SHGs, Joint Liability Groups (JLG), Multipurpose Cooperative Societies, Agri-entrepreneurs, Start-ups, and Central/State agency or Local Body sponsored Public-Private Partnership (PPP) Projects.</li>
</ul>
</li>
<li><strong>Financial Support: Rs. 1 Lakh Crore will be provided by banks and financial institutions as loans</strong> to eligible beneficiaries.<br />
<ul style="list-style-type: disc;">
<li>Moratorium for repayment may vary subject to minimum of 6 months and maximum of 2 years.</li>
</ul>
</li>
<li><strong>Interest Subvention:</strong> Loans will have interest subvention of 3% per annum up to a limit of Rs. 2 crore. This subvention will be available for a maximum period of seven years.</li>
<li><strong>CGTMSE Scheme:</strong> A credit guarantee coverage will be available for eligible borrowers from the scheme under <a href="/daily-updates/daily-news-analysis/pmegp-and-cgtmse" target="_blank" rel="noopener"><strong>Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) scheme</strong> </a>for a loan up to Rs. 2 crore.</li>
</ul>
</li>
</ul>
<div class="border-bg">
<p><strong>Central Sector Scheme</strong></p>
<ul style="list-style-type: square;">
<li>These schemes are 100% funded by the Central government.</li>
<li>Implemented by the Central Government machinery.</li>
<li>Formulated on subjects mainly from the Union List.</li>
<li>E.g.: Bharatnet, Namami Gange-National Ganga Plan, etc.</li>
</ul>
</div>
<p><a href="https://www.pib.gov.in/PressReleasePage.aspx?PRID=1714482" target="_blank" rel="noopener"><strong>Source: PIB</strong></a></p>',
		'posturl' => 'agriculture-infrastructure-fund-1',
		'publishon' => object(Cake\I18n\FrozenTime) {},
		'tag' => 'Growth & Development',
		'[new]' => false,
		'[accessible]' => [
			[maximum depth reached]
		],
		'[dirty]' => [[maximum depth reached]],
		'[original]' => [[maximum depth reached]],
		'[virtual]' => [[maximum depth reached]],
		'[errors]' => [[maximum depth reached]],
		'[invalid]' => [[maximum depth reached]],
		'[repository]' => 'articles'
	
	},
	(int) 1 => object(Cake\ORM\Entity) {

		'article_id' => (int) 8261,
		'category_id' => (int) 21,
		'title' => 'Launch of Supply Chain Resilience Initiative',
		'description' => '<h3>Why in News</h3>
<p>The Trade Ministers of<strong> India, Japan </strong>and <strong>Australia</strong> have formally launched the <strong>Supply Chain Resilience Initiative (SCRI).</strong></p>
<ul style="list-style-type: square;">
<li>The<strong> SCRI aims</strong> to create<strong> a virtuous cycle of enhancing supply chain resilience</strong> with a view to eventually attaining strong, sustainable, balanced and<strong> inclusive growth in the Indo-Pacific region.</strong></li>
<li><strong>The trio</strong> (India, Japan and Australia)<strong> along with the US</strong> makes <a href="/daily-updates/daily-news-analysis/quad-meeting-1" target="_blank" rel="noopener"><strong>Quad grouping.</strong></a></li>
</ul>
<h3>Key Points</h3>
<ul style="list-style-type: square;">
<li><strong>Supply Chain Resilience (Concept):</strong><br />
<ul style="list-style-type: circle;">
<li><strong>Meaning:</strong> In the context of international trade, supply chain resilience is an approach that <strong>helps a country to ensure that it has diversified its supply risk across a clutch of supplying nations</strong> instead of being dependent on just one or a few.</li>
<li><strong>Importance:</strong> In <strong>unanticipated events</strong> -whether natural, such as volcanic eruptions, <strong><a href="/daily-updates/daily-news-analysis/tsunami-ready-programme-unesco-ioc" target="_blank" rel="noopener">tsunamis</a></strong>, <strong><a href="/to-the-points/paper1/earthquake-4" target="_blank" rel="noopener">earthquakes</a> </strong>or even a pandemic; or manmade, such as an armed conflict in a region &mdash; that <strong>disrupt supplies from a particular country</strong> or even intentional halts to trade, <strong>could adversely impact economic activity in the destination country.</strong></li>
</ul>
</li>
<li><strong>Supply Chain Resilience Initiative:</strong><br />
<ul style="list-style-type: circle;">
<li><strong>Background:</strong> <br />
<ul style="list-style-type: disc;">
<li>The<strong> Covid-19 pandemic was having an unprecedented impact in terms of lives lost, livelihoods and economies affected,</strong> and that the pandemic had <strong>revealed supply chain vulnerabilities globally</strong> and in the region.</li>
</ul>
</li>
<li><strong>About:</strong><br />
<ul style="list-style-type: disc;">
<li><strong>Objectives:</strong><br />
<ul style="list-style-type: disc;">
<li>To <strong>attract foreign direct investment</strong> to turn the Indo-Pacific into an &ldquo;economic powerhouse&rdquo;.</li>
<li>To build a mutually<strong> complementary relationship among partner countries.</strong></li>
<li>To work out a plan to <strong>build on the existential supply chain network.</strong> Japan and India, for example, have an India-Japan competitiveness partnership dealing with locating the Japanese companies in India.</li>
</ul>
</li>
<li><strong>Features:</strong><br />
<ul style="list-style-type: disc;">
<li>The SCRI, first <strong>proposed by Japan, aims to reduce dependence on China</strong> amid a likelihood of rechurning of supply chains in the Indo-Pacific region amid the Covid-19 pandemic.</li>
<li><strong>Initially,</strong> SCRI will <strong>focus on sharing best practices on supply chain resilience and holding investment promotion events</strong> and buyer-seller matching events to provide opportunities for stakeholders to explore the possibility of diversification of their supply chains.</li>
<li>Joint measures may include <strong>supporting the enhanced utilisation of digital technology and trade and investment diversification.</strong></li>
<li><strong>Expansion of the SCRI may be considered based on consensus,</strong> if needed, in due course. The <strong>ministers have decided to convene at least once a year</strong> to provide guidance to the implementation and development of the SCRI.<br />
<ul style="list-style-type: disc;">
<li>This <strong>assumes significance in the wake of Japan's keenness to onboard the <a href="/important-institutions/drishti-specials-important-institutions-international-institution/asean" target="_blank" rel="noopener">ASEAN</a> in the initiative, </strong>something that <strong>India has opposed.</strong></li>
<li><strong>India wants to safeguard its interests from China&rsquo;s indirect influence through the bloc (ASEAN)</strong> as it builds on its self-reliance through reduced dependence on imports.</li>
</ul>
</li>
</ul>
</li>
</ul>
</li>
</ul>
</li>
<li><strong>Significance to India:</strong><br />
<ul style="list-style-type: circle;">
<li>Following the <strong>border tensions with China,</strong> partners such as Japan have sensed that India may be ready for dialogue on alternative supply chains.</li>
<li><strong>China still remains a large source of critical imports for India,</strong> from mobile phone components to pharmaceutical ingredients. An internal push to suddenly cut links with China would be impractical.</li>
<li>Over time,<strong> if India enhances self-reliance or works with exporting nations other than China, </strong>it<strong> could build resilience into the economy&rsquo;s supply networks.</strong></li>
</ul>
</li>
</ul>
<h3>Way Forward</h3>
<ul style="list-style-type: square;">
<li>It will help boost India&rsquo;s manufacturing competitiveness and increase its share in world trade. In this pursuit, there is<strong> a need to create an infrastructure</strong> that raises the competitiveness of India&rsquo;s exports.</li>
<li>While India appears an attractive option for potential investors both as a market and as a manufacturing base, it <strong>needs to accelerate progress in ease of doing business and in skill building.</strong></li>
</ul>
<p><a href="https://pib.gov.in/PressReleasePage.aspx?PRID=1714362" target="_blank" rel="noopener"><strong>Source: PIB</strong></a></p>',
		'posturl' => 'launch-of-supply-chain-resilience-initiative',
		'publishon' => object(Cake\I18n\FrozenTime) {},
		'tag' => 'Growth & Development',
		'[new]' => false,
		'[accessible]' => [
			[maximum depth reached]
		],
		'[dirty]' => [[maximum depth reached]],
		'[original]' => [[maximum depth reached]],
		'[virtual]' => [[maximum depth reached]],
		'[errors]' => [[maximum depth reached]],
		'[invalid]' => [[maximum depth reached]],
		'[repository]' => 'articles'
	
	},
	(int) 2 => object(Cake\ORM\Entity) {

		'article_id' => (int) 8247,
		'category_id' => (int) 21,
		'title' => 'Chandler Good Government Index',
		'description' => '<h3>Why in News</h3>
<p>Recently, India has been <strong>ranked 49<sup>th</sup></strong> in the <strong>Chandler Good Government Index (CGGI).</strong></p>
<ul style="list-style-type: square;">
<li><strong>Finland</strong> has topped the list.</li>
</ul>
<h3>Key Points</h3>
<ul style="list-style-type: square;">
<li><strong>About:</strong>
<ul style="list-style-type: circle;">
<li>The CGGI is<strong> released by the Chandler Institute of Governance</strong> which is a private nonprofit organization <strong>headquartered in Singapore.</strong></li>
<li>The Index classifies <strong>104 countries</strong> in terms of government capabilities and outcomes.</li>
<li>Each country is measured across over 50 open data points. The index focuses <strong>on seven pillars:</strong>
<ul style="list-style-type: disc;">
<li>Leadership and foresight.</li>
<li>Robust laws and policies.</li>
<li>Strong institutions.</li>
<li>Financial stewardship.</li>
<li>Attractive marketplace.</li>
<li>Global influence and reputation.</li>
<li>Helping people rise.</li>
</ul>
</li>
</ul>
</li>
<li><strong>Objective:</strong>
<ul style="list-style-type: circle;">
<li>It <strong>supports government leaders and public officers worldwide in nation building</strong> and strengthening public institutional capacity through training, research and advisory work.</li>
<li>It also <strong>shares tools and frameworks for effective policymaking, and empowers nations to provide better public services</strong> for citizens.</li>
</ul>
</li>
<li><strong>Performance of South Asian Countries:</strong>
<ul style="list-style-type: circle;">
<li>India ranked 49<sup>th</sup>, Sri Lanka 74<sup>th</sup>, Pakistan 90<sup>th</sup> and Nepal 92<sup>nd</sup>.</li>
</ul>
</li>
<li><strong>Indian Initiatives for Good Governance:</strong>
<ul style="list-style-type: circle;">
<li><strong><a href="/daily-updates/daily-news-analysis/good-governance-day" target="_blank" rel="noopener">Good Governance Index</a>:</strong>
<ul style="list-style-type: disc;">
<li>It has been launched by the <strong>Ministry of Personnel, Public Grievances &amp; Pensions</strong> to determine the status of governance in the country.</li>
<li>It assesses the <strong>impact of various interventions taken up by the State Government and UTs.</strong></li>
</ul>
</li>
<li><strong><a href="/daily-updates/daily-news-analysis/good-governance-day-1#:~:text=Good%20Governance%20Index%3A,the%20State%20Government%20and%20UTs." target="_blank" rel="noopener">Good Governance Day</a>:</strong>
<ul style="list-style-type: disc;">
<li>It is celebrated annually on <strong>25<sup>th</sup> December</strong> to mark the birth anniversary of the former Prime Minister <a href="/daily-updates/daily-news-analysis/atal-bihari-vajpayee-passes-away" target="_blank" rel="noopener"><strong>Atal Bihari Vajpayee</strong></a>.</li>
<li>Its aim is to create awareness of accountability in government among the citizens of India.</li>
</ul>
</li>
<li><strong><a href="/to-the-points/Paper2/e-governance-1" target="_blank" rel="noopener">National e-Governance Plan</a>:</strong>
<ul style="list-style-type: disc;">
<li>It has the vision to <strong>&ldquo;make all government services accessible to the common man in his locality</strong>, through common service delivery outlets and ensure efficiency, transparency &amp; reliability of such services at affordable costs to realize the basic needs of the common man.&rdquo;</li>
</ul>
</li>
<li><strong><a href="/to-the-points/paper4/right-to-information-1" target="_blank" rel="noopener">Right to Information Act, 2005</a>:</strong>
<ul style="list-style-type: disc;">
<li>It plays an effective role in ensuring transparency in governance.</li>
</ul>
</li>
<li><strong>Other Initiatives:</strong>
<ul style="list-style-type: disc;">
<li>Setting up of <strong><a href="/important-institutions/drishti-specials-important-institutions-national-institutions/niti-aayog-national-institution-for-transforming-india" target="_blank" rel="noopener">NITI Aayog</a>, <a href="/daily-updates/daily-news-editorials/assessment-of-make-in-india" target="_blank" rel="noopener">Make in India programme</a>, <a href="/printpdf/lokpal-lokayukta-ombudsman-upsc-governance-transparency" target="_blank" rel="noopener">Lokpal</a></strong>, etc.</li>
</ul>
</li>
</ul>
</li>
</ul>
<h3>Governance</h3>
<ul style="list-style-type: square;">
<li><strong>About:</strong>
<ul style="list-style-type: circle;">
<li>It is the <strong>process of decision-making</strong> and the process by which decisions are implemented (or not implemented).</li>
<li><a href="/be-mains-ready-daily-answer-writing-practice-question/papers/2019/good-governance-principles-polity-gspaper2-upsc-mains" target="_blank" rel="noopener"><strong>Governance</strong> </a>can be used in several contexts such as <strong>corporate governance, international governance, national governance and local governance.</strong></li>
</ul>
</li>
<li><strong>Good Governance:</strong>
<ul style="list-style-type: circle;">
<li>It is an approach to <strong>government that is committed</strong> to creating a system founded in <strong>justice and peace that protects individual&rsquo;s human rights and civil liberties.</strong></li>
</ul>
</li>
<li><strong>Eight Characteristics of Good Governance as Identified by the <a href="/important-institutions/drishti-specials-important-institutions-international-institution/united-nations-1" target="_blank" rel="noopener">United Nations</a>:</strong></li>
</ul>
<p><a href="http://www.drishtiias.com/images/uploads/1619520627_pasted%20image 0.png" target="_blank" rel="noopener"><img class="content-img" src="http://www.drishtiias.com/images/uploads/1619520627_pasted image 0.png" width="350" caption="false" style="display: block; margin-left: auto; margin-right: auto;" /></a></p>
<p><a href="https://www.thehindu.com/news/national/india-ranked-49th-in-cggi/article34417911.ece" target="_blank" rel="noopener"><strong>Source:TH</strong></a></p>',
		'posturl' => 'chandler-good-government-index',
		'publishon' => object(Cake\I18n\FrozenTime) {},
		'tag' => 'Growth & Development',
		'[new]' => false,
		'[accessible]' => [
			[maximum depth reached]
		],
		'[dirty]' => [[maximum depth reached]],
		'[original]' => [[maximum depth reached]],
		'[virtual]' => [[maximum depth reached]],
		'[errors]' => [[maximum depth reached]],
		'[invalid]' => [[maximum depth reached]],
		'[repository]' => 'articles'
	
	},
	(int) 3 => object(Cake\ORM\Entity) {

		'article_id' => (int) 8196,
		'category_id' => (int) 21,
		'title' => 'Startup India Seed Fund Scheme',
		'description' => '<h3>Why in News</h3>
<p>Recently, the Government has launched the <strong>Startup India Seed Fund Scheme (SISFS).</strong></p>
<ul style="list-style-type: square;">
<li>The Scheme was announced during the<strong> &lsquo;Prarambh: StartupIndia International Summit&rsquo;</strong> which marked<strong> the five-year anniversary of the Startup India initiative.</strong></li>
</ul>
<h3>Key Points</h3>
<ul style="list-style-type: square;">
<li><strong>About the Startup India Seed Fund Scheme (SISFS):</strong><br />
<ul style="list-style-type: circle;">
<li><strong>Aim:</strong> To provide financial assistance to startups for proof of concept, prototype development, product trials, market entry, and commercialization.</li>
<li><strong>Launched by:</strong> <a href="/daily-updates/daily-news-analysis/dipp-renamed-as-dpiit" target="_blank" rel="noopener"><strong>Department for Promotion of Industry and Internal Trade (DPIIT)</strong></a> with an outlay of Rs. 945 Crore.</li>
<li><strong>Some Eligibility Conditions:</strong><br />
<ul style="list-style-type: disc;">
<li>A startup, recognized by DPIIT, <strong>incorporated not more than 2 years ago</strong> at the time of application.</li>
<li>Startups <strong>should not have received more than Rs. 10 lakh of monetary support</strong> under any other Central or State Government scheme.</li>
</ul>
</li>
<li><strong>Features:</strong><br />
<ul style="list-style-type: disc;">
<li>It will <strong>support an estimated 3,600 entrepreneurs through 300 incubators </strong>in the <strong>next 4 years.</strong></li>
<li>An <strong>Experts Advisory Committee (EAC),</strong> constituted by DPIIT, will be <strong>responsible for the overall execution</strong> and monitoring of the Scheme.</li>
<li><strong>Grants of upto Rs. 5 crore will be provided to the eligible incubators</strong> selected by the committee.</li>
<li>The <strong>selected incubators will provide grants of up to Rs. 20 lakh</strong> for validation of proof of concept, or prototype development, or product trials to <strong>startups.</strong></li>
<li><strong>Investments of up to Rs. 50 lakh will be provided to the startups</strong> for market entry, commercialization, or scaling up through convertible debentures or debt-linked instruments.</li>
</ul>
</li>
<li><strong>Expected Benefit:</strong><br />
<ul style="list-style-type: disc;">
<li>It will <strong>help in creating a robust startup ecosystem in Tier 2 and 3 regions,</strong> as the smaller towns in India are often not provided with appropriate funding.</li>
</ul>
</li>
</ul>
</li>
<li><strong>About Startup India Initiative:</strong><br />
<ul style="list-style-type: circle;">
<li>It <strong>envisages building a robust Startup ecosystem in the country</strong> for nurturing innovation and providing opportunities to budding entrepreneurs. It was launched in 2016.</li>
<li>The <strong>action plan</strong> of this initiative<strong> focuses on following three areas:</strong><br />
<ul style="list-style-type: disc;">
<li>Simplification and Handholding.</li>
<li>Funding Support and Incentives.</li>
<li>Industry-Academia Partnership and Incubation.</li>
</ul>
</li>
</ul>
</li>
<li><strong>Related Government Initiatives: </strong><br />
<ul style="list-style-type: circle;">
<li><strong>Startup Innovation Challenges:</strong> It is a fantastic opportunity for any startup to leverage their networking and fund-raising efforts.</li>
<li><strong>National Startup Awards:</strong> It seeks to recognize and reward outstanding startups and ecosystem enablers that are contributing to economic dynamism by spurring innovation and injecting competition.</li>
<li><a href="/daily-updates/daily-news-analysis/ranking-of-states-on-support-to-startup-ecosystems-dpiit" target="_blank" rel="noopener"><strong>Ranking of States on Support to Startup Ecosystems:</strong></a> It is an evolved evaluation tool aimed to strengthen the support of States and UTs to holistically build their startup ecosystems.</li>
<li><strong>SCO Startup Forum:</strong> The first-ever <a href="/important-institutions/drishti-specials-important-institutions-international-institution/important-international-institutions-shanghai-cooperation-organisation-sco" target="_blank" rel="noopener"><strong>Shanghai Cooperation Organisation (SCO)</strong></a> Startup Forum was launched in October 2020 to develop and improve startup ecosystems collectively.</li>
<li><strong>Prarambh:</strong> The &lsquo;Prarambh&rsquo; Summit aims to provide a platform to the startups and young minds from around the world to come with new ideas, innovation and invention.</li>
</ul>
</li>
</ul>
<div class="border-bg">
<p><strong>Seed Funding</strong></p>
<ul style="list-style-type: square;">
<li>It typically<strong> represents the first official money</strong> that a business venture or enterprise raises.</li>
<li>It helps a company to finance its first steps, including things like market research and product development.</li>
<li>There are many potential investors in a seed funding situation: founders, friends, family, incubators, venture capital companies and more.</li>
<li>One of the most common types of investors participating in seed funding is a so-called <strong>"angel investor."</strong> <br />
<ul style="list-style-type: circle;">
<li>Angel investors tend to appreciate riskier ventures (such as startups with little by way of a proven track record so far) and expect an equity stake in the company in exchange for their investment.</li>
</ul>
</li>
</ul>
<p><strong>Department for Promotion of Industry and Internal Trade</strong></p>
<ul style="list-style-type: square;">
<li>The department was earlier called Department of Industrial Policy &amp; Promotion and was renamed as DPIIT in January, 2019.</li>
<li>It comes under the<strong> Ministry of Commerce and Industry.</strong></li>
<li>In 2018, matters related to<a href="/to-the-points/paper3/e-commerce-in-india" target="_blank" rel="noopener"><strong> e-commerce</strong> </a>were transferred to the Department and in 2019, the Department was given charge for matters related to Internal Trade, welfare of traders and their employees and Startups.</li>
<li>The role of DPIIT is to promote/accelerate industrial development of the country by facilitating investment in new and upcoming technology,<a href="/daily-updates/daily-news-analysis/fdi-inflow" target="_blank" rel="noopener"><strong> foreign direct investment</strong></a> and support balanced development of industries.</li>
<li><strong>Major engagements of DPIIT:</strong><br />
<ul style="list-style-type: circle;">
<li><strong><a href="/daily-updates/daily-news-analysis/ease-of-doing-business-rankings-of-the-states-dpiit" target="_blank" rel="noopener">Business Reform Action Plan (BRAP) ranking of states</a>,</strong></li>
<li><strong><a href="/to-the-points/paper3/industrial-corridors-2" target="_blank" rel="noopener">Industrial Corridors</a>,</strong></li>
<li><strong><a href="/daily-updates/daily-news-analysis/united-nations-investment-promotion-award-2020" target="_blank" rel="noopener">Invest India</a>,</strong></li>
<li><strong><a href="/daily-updates/daily-news-editorials/assessment-of-make-in-india" target="_blank" rel="noopener">Make in India initiative</a>, etc.</strong></li>
</ul>
</li>
</ul>
</div>
<p><a href="https://pib.gov.in/PressReleasePage.aspx?PRID=1712699" target="_blank" rel="noopener"><strong>Source: PIB</strong></a></p>',
		'posturl' => 'startup-india-seed-fund-scheme',
		'publishon' => object(Cake\I18n\FrozenTime) {},
		'tag' => 'Growth & Development',
		'[new]' => false,
		'[accessible]' => [
			[maximum depth reached]
		],
		'[dirty]' => [[maximum depth reached]],
		'[original]' => [[maximum depth reached]],
		'[virtual]' => [[maximum depth reached]],
		'[errors]' => [[maximum depth reached]],
		'[invalid]' => [[maximum depth reached]],
		'[repository]' => 'articles'
	
	},
	(int) 4 => object(Cake\ORM\Entity) {

		'article_id' => (int) 8171,
		'category_id' => (int) 21,
		'title' => 'NEFT & RTGS Direct Membership for Payment System Operators',
		'description' => '<h3>Why in News</h3>
<p>Recently, the <a href="/important-institutions/drishti-specials-important-institutions-national-institutions/important-institutions-national-institution-reserve-bank-of-india" target="_blank" rel="noopener"><strong>Reserve Bank of India (RBI)</strong></a> has <strong>proposed to enable</strong>, in a phased manner, <strong>payment system operators</strong> to take <strong>direct membership in RTGS and NEFT.</strong></p>
<ul style="list-style-type: square;">
<li><a href="/daily-updates/daily-news-analysis/round-the-clock-rtgs-facility#:~:text=It%20enables%20real%2Dtime%20transfer,funds%20transfer%20instructions%20occurs%20individually." target="_blank" rel="noopener"><strong>Real Time Gross Settlement System (RTGS)</strong></a> and <a href="/daily-updates/daily-news-analysis/national-electronic-fund-transfer-neft" target="_blank" rel="noopener"><strong>National Electronic Fund Transfer (NEFT)</strong></a> are the <strong>Centralised Payment Systems (CPSs) of the RBI.</strong></li>
<li><strong>Non-bank payment system operators</strong>, regulated by the RBI, will be allowed to take direct membership in CPSs.</li>
</ul>
<div class="border-bg">
<p><strong>Centralised &amp; Decentralised Payment Systems</strong></p>
<ul style="list-style-type: square;">
<li>The <strong>centralised payment systems</strong> will include <strong>Real Time Gross Settlement (RTGS) System and National Electronic Fund Transfer (NEFT) system</strong> and any other system as may be decided by RBI from time to time. <br />
<ul style="list-style-type: circle;">
<li><strong>RTGS:</strong> It enables real-time transfer of funds to a beneficiary&rsquo;s account and is primarily meant for large-value transactions.<br />
<ul style="list-style-type: disc;">
<li>Real time means the processing of instructions at the time they are received and gross settlement implies that settlement of funds transfer instructions occurs individually.</li>
</ul>
</li>
<li><strong>NEFT:</strong> It is an electronic fund transfer system in which the transactions received up to a particular time are <strong>processed in batches.</strong><br />
<ul style="list-style-type: disc;">
<li>It is <strong>generally used for fund transfers of up to Rs. 2 lakh.</strong></li>
</ul>
</li>
<li>The <strong>decentralised payment systems</strong> will include <strong>clearing houses managed by RBI</strong> (Cheque Truncation System (CTS) centres) as well as other banks (Express Cheque Clearing System (ECCS) centres) and any other system as decided by RBI from time to time.</li>
</ul>
</li>
</ul>
</div>
<h3>Key Points</h3>
<ul style="list-style-type: square;">
<li><strong>Direct Membership of NEFT &amp; RTGS to Payment System Operators:</strong><br />
<ul style="list-style-type: circle;">
<li><strong>About:</strong><br />
<ul style="list-style-type: disc;">
<li>This is <strong>expected to minimise settlement risk in the financial system and enhance the reach of digital financial services</strong> to all user segments.</li>
<li>These entities will, however, <strong>not be eligible for any liquidity facility</strong> from RBI to facilitate settlement of their transactions in these <strong>Centralised Payment Systems (CPSs).</strong></li>
<li>This <strong>will be subject to an overall limit of Rs. 2 lakh for non-banks.</strong></li>
</ul>
</li>
<li><strong>Non- Bank Entities becoming the Members of CPS:</strong><br />
<ul style="list-style-type: disc;">
<li><a href="/summary-of-important-reports/niti-aayog-digital-payments-trends-issues-and-opportunities" target="_blank" rel="noopener"><strong>Prepaid Payment Instrument (PPI)</strong></a> issuers, Card Networks, <a href="https://www.google.com/url?q=https://www.drishtiias.com/daily-updates/daily-news-analysis/white-label-atm&amp;sa=D&amp;source=editors&amp;ust=1618656478082000&amp;usg=AOvVaw0mhlFVBsatqkkdXknj2cKf" target="_blank" rel="noopener"><strong>White Label ATM</strong></a> operators, <a href="/current-affairs-news-analysis-editorials/news-analysis/03-11-2018#:~:text=Trade%20Receivables%20Discounting%20System%20(TReDS,PSUs)%2C%20through%20multiple%20financiers." target="_blank" rel="noopener"><strong>Trade Receivables Discounting System (TReDS)</strong></a> platforms are going to become members of CPS.</li>
<li><strong>Mobile wallets</strong> like Google Pay, Mobikwik, etc. can provide NEFT and RTGS facilities etc to their customers. <br />
<ul style="list-style-type: disc;">
<li>Transfer will be allowed only to <strong>KYC (know your customer)-compliant entities.</strong></li>
</ul>
</li>
</ul>
</li>
</ul>
</li>
<li><strong>Facility of Cash Withdrawal:</strong><br />
<ul style="list-style-type: circle;">
<li>RBI has also <strong>proposed to allow the facility of cash withdrawal</strong>, subject to a limit, to non-bank entities &mdash; full-KYC PPIs of non-bank PPI issuers.</li>
<li><strong>Currently, cash withdrawal is allowed only for full-KYC PPIs issued by banks</strong> and this facility is available through ATMs and Point of Sale terminals.</li>
<li>Holders of such <strong>PPIs, given the comfort that they can withdraw cash, are less incentivised to carry cash and consequently more likely to perform digital transactions.</strong></li>
</ul>
</li>
<li><strong>Advantages:</strong><br />
<ul style="list-style-type: circle;">
<li><strong>Increase Digital Transactions:</strong><br />
<ul style="list-style-type: disc;">
<li>Just as use of <a href="/daily-updates/daily-news-analysis/upi-transactions" target="_blank" rel="noopener"><strong>Unified Payment Interface (UPI)</strong> </a>increased over the last 4-5 years since it was opened to third-party aggregators, opening the payment system to non-banks would increase digital payments and transactions significantly.</li>
<li>It will <strong>enable non-banks to go for full KYC</strong> compliance and interoperability.</li>
</ul>
</li>
<li><strong>Better Record of Transactions:</strong><br />
<ul style="list-style-type: disc;">
<li>It will prepare a <strong>digital trail of all individuals doing digital transactions on channels outside the banking system</strong>, which could help the overall financial system.</li>
</ul>
</li>
<li><strong>Increase in Market Size:</strong><br />
<ul style="list-style-type: disc;">
<li>Interoperability of the PPI wallet will <strong>expand the market size and will be beneficial to the end consumers.</strong></li>
</ul>
</li>
<li><strong>Financial Inclusion:</strong><br />
<ul style="list-style-type: disc;">
<li>This will <strong>open new opportunities for PPI issuers</strong> as they will be able to provide RTGS and NEFT services to the wallet users. Overall, this will take financial inclusion deeper in the country.</li>
</ul>
</li>
</ul>
</li>
<li><strong>Concerns:</strong><br />
<ul style="list-style-type: circle;">
<li>The opening up of fund transfer and cash withdrawal through non-banks is certainly a sign of a changing banking horizon. <strong>Traditional brick-and-mortar banking is slowly disappearing</strong> with non-banks entering the space.</li>
<li>The RBI says <strong>India is on the way to becoming Asia&rsquo;s top FinTech hub with an 87% FinTech adoption rate as against the global average of 64%.</strong> <br />
<ul style="list-style-type: disc;">
<li><strong>Fintech (Financial technology)</strong> refers to the integration of technology into offerings by financial services companies in order to improve their use and delivery to consumers.</li>
</ul>
</li>
<li>The FinTech market in India was valued at <strong>Rs. 1.9 lakh crore in 2019 and is expected to reach Rs. 6.2 lakh crore by 2025</strong> across diversified fields such as <strong><a href="/daily-updates/daily-news-analysis/rise-in-digital-transactions" target="_blank" rel="noopener">digital payments</a></strong>,<strong><a href="/daily-updates/daily-news-analysis/digital-lending" target="_blank" rel="noopener"> digital lending</a></strong>,<strong><a href="/current-affairs-news-analysis-editorials/news-analysis/25-03-2019" target="_blank" rel="noopener">peer-to-peer (P2P) lending</a></strong>,<strong><a href="/daily-updates/daily-news-analysis/crowdfunding" target="_blank" rel="noopener"> crowdfunding</a></strong>,<a href="/daily-updates/daily-news-analysis/blockchain-technology-in-voting#:~:text=Blockchain%20is%20a%20system%20in,time%20transaction%20transparency%20and%20auditability." target="_blank" rel="noopener"><strong> block chain technology</strong></a>, distributed ledgers technology, <a href="/to-the-points/paper3/big-data-1" target="_blank" rel="noopener"><strong>big data</strong></a>, RegTech and SupTech.</li>
</ul>
</li>
</ul>
<h3>Way Forward</h3>
<ul style="list-style-type: square;">
<li>In a world where FinTech companies are leading in terms of the volume of digital transactions and playing a more active role in the banking and finance industry, <strong>it is important that commercial banks adapt to the technological changes and work in tandem with these entities</strong> so that in future they are part of the ecosystem rather than competing with FinTech companies for business.</li>
</ul>
<p><a href="https://indianexpress.com/article/explained/what-money-transfer-outside-banking-system-signals-7275472/" target="_blank" rel="noopener"><strong>Source:IE</strong></a></p>',
		'posturl' => 'neft-rtgs-direct-membership-for-payment-system-operators',
		'publishon' => object(Cake\I18n\FrozenTime) {},
		'tag' => 'Growth & Development',
		'[new]' => false,
		'[accessible]' => [
			[maximum depth reached]
		],
		'[dirty]' => [[maximum depth reached]],
		'[original]' => [[maximum depth reached]],
		'[virtual]' => [[maximum depth reached]],
		'[errors]' => [[maximum depth reached]],
		'[invalid]' => [[maximum depth reached]],
		'[repository]' => 'articles'
	
	},
	(int) 5 => object(Cake\ORM\Entity) {

		'article_id' => (int) 8168,
		'category_id' => (int) 22,
		'title' => 'Resurge in Covid Cases and Economic Recovery ',
		'description' => '<div class="border">
<p><em><strong>This Article is based upon &ldquo;<a href="https://www.hindustantimes.com/editorials/bracing-for-economic-disruption-101618492329640.html" target="_blank" rel="noopener">A Looming Economic Crisis</a>&rdquo; which was published in the Hindustan Times on 15 April, 2021. It talks about how the drastic increase in the number of Covid-19 cases is acting as a barrier in India&rsquo;s slowly recovering economy, once again.</strong></em></p>
</div>
<p>The last fiscal year, FY 2020-21 was no less than a roller coaster ride for India&rsquo;s economy, witnessing nationwide partial and complete lockdowns, curfews and increase in unemployment with no projections of the economy returning to the 2019-20 levels of GDP even in FY 2021-22.</p>
<p>However, with the easing of lockdown restrictions, these projections were revised favourably in late 2020.</p>
<p>Just when there was growing optimism over India&rsquo;s economic rebound, when the <a href="/daily-updates/daily-news-analysis/world-economic-outlook-imf-2" target="_blank" rel="noopener"><strong>IMF upgraded India&rsquo;s GDP forecast for FY 21-22 to 12.5%</strong></a>, the second <a href="/daily-updates/daily-news-editorials/comprehensive-action-plan-for-covid-19" target="_blank" rel="noopener"><strong>Covid-19</strong></a> wave has come as a rude shock to businesses and consumers alike.</p>
<p>India&rsquo;s daily new cases have been hitting higher peaks every day, with the country contributing almost 20% to the global tally of fresh daily cases. The situation is worse than last year&rsquo;s peak situation where the only sigh of relief is India now has access to vaccines.</p>
<h3>India&rsquo;s Economic Recovery</h3>
<ul style="list-style-type: square;">
<li><strong>Factors Facilitating the Growth:</strong>The gross tax collections are estimated to have touched ₹20.16 lakh crore (₹20.16 Trillion), up ₹1.2 lakh crore from the revised estimates detailed in the Union Budget a few months ago.<br />
<ul style="list-style-type: circle;">
<li>The Centre&rsquo;s indirect tax collections have touched ₹10.71 lakh crore in 2020-21, even higher than the collections in 2019-20.</li>
<li>Indicators like the Purchasing Managers&rsquo; Index (PMI), tractor &amp; two-wheeler sales, Goods and Services Tax collection, E-way bills, and rail freight traffic showed sustained growth in 2021.</li>
<li>The exports figures have also seen a huge jump standing at 31 billion dollar</li>
</ul>
</li>
</ul>
<h3>Impacts of Resurging Covid Cases and Consequent Lockdowns</h3>
<ul style="list-style-type: square;">
<li><strong>Highest Week-on-Week Decline as per NIBRI:</strong> The <strong>Nomura India Business Resumption Index (NIBRI)</strong>, is a weekly tracker of the pace of normalisation of economic activity.<br />
<ul style="list-style-type: circle;">
<li>The index reached 99 points in February, 2021 but slipped down to 90.5 in the month of April, registering its biggest week-on-week fall.</li>
<li>The reason for this downfall is mainly the second wave of Covid-19.</li>
</ul>
</li>
<li><strong>City-wise Impact:</strong> States like Maharashtra, Madhya Pradesh, Punjab, and Chhattisgarh, which are witnessing the highest surge in COVID-19 cases, account for over 30% of India&rsquo;s GDP. <br />
<ul style="list-style-type: circle;">
<li>Even partial lockdowns and curbs in these states will impact economic activity majorly and if the lockdowns are extended further due to uncontrolled infections, the damage will be even more extensive.</li>
</ul>
</li>
<li><strong>Contraction in Industrial Output:</strong> The Index of Industrial Production (IIP) has witnessed the sharpest contraction in the month of February 2021 (since August 2020), at the rate of 3.6%. <br />
<ul style="list-style-type: circle;">
<li>The recent spike in Covid-19 cases has raised concerns over the economic recovery, especially with the imposition of harsher restrictions on activities now being a possibility.</li>
<li>The restrictions currently being imposed such as night curfews and weekend lockdowns are economically less painful. However, if the situation worsens, harsher measures cannot be ruled out.</li>
</ul>
</li>
<li><strong>Manufacturing and Other Sectors:</strong> While manufacturing may not be directly hit due to partial lockdowns, the impact on the contact services sectors like hospitality, travel, and tourism will have a multiplier effect, as these sectors have strong backward linkages with other sectors of the economy.</li>
</ul>
<h3>Way Forward</h3>
<ul style="list-style-type: square;">
<li><strong>Significant Role of Vaccines:</strong> The only effective way to safeguard the economy from another massive disruption is to relax both demand and supply for vaccines.<br />
<ul style="list-style-type: circle;">
<li>More than 10 crore shots have been administered so far, however, it accounts for only 8% of the country&rsquo;s population that has received at least one shot, the US and the UK, in contrast, have vaccinated close to 50% of their total population.</li>
<li>Vaccination is a key element in controlling the second wave of Covid-19, but a shortage of vaccines could slow the progress of vaccine rollout.<br />
<ul style="list-style-type: disc;">
<li>Therefore, the government shall now increase the reach of the vaccines and make the eligibility criteria for vaccination more expansive.</li>
</ul>
</li>
</ul>
</li>
<li><strong>Reducing the Tax Levies:</strong> The RBI, which has been stridently seeking a reduction in the tax levies, foresees inflation averaging 5.2% in the April-June quarter. <br />
<ul style="list-style-type: circle;">
<li>The price pressures are unlikely to ease significantly in the near term, unless the Centre and the States bite the bullet by agreeing to forego some near-term revenue from petroproducts and reduce fuel taxes.</li>
</ul>
</li>
<li><strong>Role of Policy Makers:</strong> More efforts and better policies are needed on the part of Policymakers, to nurse back demand and this must be done without letting quickening inflation undermine purchasing power and overall economic stability.<br />
<ul style="list-style-type: circle;">
<li>Moreover, policymakers should not lose sight of the fact that India is better equipped to fight the virus compared to last year. <br />
<ul style="list-style-type: disc;">
<li>At this juncture, the primary objective of governments, both at the Centre and states, should be to ramp up the vaccination drive.</li>
</ul>
</li>
</ul>
</li>
<li><strong>Expenditures as Proposed in the Union Budget:</strong> The support from the rebound in global growth and implementation of the Union Budget&rsquo;s proposed capital expenditures will reinforce India&rsquo;s economic revival.<br />
<ul style="list-style-type: circle;">
<li>Moreover, the agricultural growth and rural demand have been quite robust until now, which is also expected to support growth.</li>
</ul>
</li>
</ul>
<h3>Conclusion</h3>
<ul style="list-style-type: square;">
<li>If the choice between flattening the Covid-19 curve and economic hardship was difficult last year, it will be even more difficult this year, as businesses and workers are still nursing the wounds of the first lockdown. <br />
<ul style="list-style-type: circle;">
<li>The second wave has coincided with the beginning of the new fiscal year which means that even the conservative revenue targets in the Budget could be jeopardised.</li>
</ul>
</li>
<li>In all these difficult circumstances, the only silver lining that India has is the availability of the Vaccines and its ongoing Vaccination Drive. It must be taken advantage to the fullest.</li>
</ul>
<table border="1" style="border-collapse: collapse; width: 100%;">
<tbody>
<tr style="height: 92px;">
<td style="width: 100%; height: 92px; border-color: #ff0000; background-color: #f5fcff; border-style: dotted;">
<p><span style="color: #333399;"><em><strong>Drishti Mains Question:</strong></em></span></p>
<p>&ldquo;Flattening the Covid-19 curve or dealing with the economic hardships. Choosing sides between these two is not exactly a wise decision to make, maintaining a balance is the need of the hour&rdquo;. Discuss.</p>
</td>
</tr>
</tbody>
</table>
<p></p>
<p></p>',
		'posturl' => 'resurge-in-covid-cases-and-economic-recovery',
		'publishon' => object(Cake\I18n\FrozenTime) {},
		'tag' => 'Growth & Development',
		'[new]' => false,
		'[accessible]' => [
			[maximum depth reached]
		],
		'[dirty]' => [[maximum depth reached]],
		'[original]' => [[maximum depth reached]],
		'[virtual]' => [[maximum depth reached]],
		'[errors]' => [[maximum depth reached]],
		'[invalid]' => [[maximum depth reached]],
		'[repository]' => 'articles'
	
	},
	(int) 6 => object(Cake\ORM\Entity) {

		'article_id' => (int) 8152,
		'category_id' => (int) 21,
		'title' => 'Research on Lithium Ion Battery Performance',
		'description' => '<h3>Why in News</h3>
<p>Researchers from IIT Guwahati have developed a technique to improve the performance of rechargeable lithium-ion batteries, which power most of the portable devices used today.</p>
<h3>Key Points</h3>
<ul style="list-style-type: square;">
<li><strong>Lithium Ion Batteries:</strong><br />
<ul style="list-style-type: circle;">
<li><strong>Development:</strong><br />
<ul style="list-style-type: disc;">
<li>The <a href="/daily-updates/daily-news-analysis/nobel-prize-in-chemistry-2019" target="_blank" rel="noopener"><strong>2019 Nobel Prize in Chemistry</strong></a> was jointly awarded to <strong>Stanley Whittingham, John Goodenough and Akira Yoshino</strong> for work that led to the development of <strong>lithium-ion batteries.</strong></li>
<li>The <strong>foundation of the lithium-ion (Li-ion) battery was laid during the oil crisis of the 1970s</strong>, around which time Whittingham started working on developing methods that could lead to fossil fuel-free energy technologies.</li>
<li>The <strong>first commercially viable Li-ion battery</strong> was created by Yoshino <strong>in 1985.</strong></li>
</ul>
</li>
<li><strong>Utility:</strong> <br />
<ul style="list-style-type: disc;">
<li>Li-ion batteries provide portable electricity, powering electronic gadgets such as mobile phones, laptops and tablets.</li>
<li>Today, most <a href="/to-the-points/paper3/electric-vehicles-evs" target="_blank" rel="noopener"><strong>Electrical Vehicles (EV)</strong></a><strong> use Li-ion batteries</strong> as well, but are slowly reaching their theoretical limits of being able to provide roughly up to <strong>300-watt hour per kilogram</strong> of energy.</li>
<li>These batteries can also be used to <strong>store solar and wind power</strong>, which means that with their widespread use it may even be possible to <strong>live in a fuel free society.</strong></li>
</ul>
</li>
<li><strong>Disadvantage:</strong><br />
<ul style="list-style-type: disc;">
<li>Some of the disadvantages of Li-ion batteries include their <strong>susceptibility to overheating</strong> and their <strong>being prone to damage at high voltages.</strong><br />
<ul style="list-style-type: disc;">
<li>Since they are made with <strong>flammable and combustible materials.</strong></li>
</ul>
</li>
<li>Such batteries also start <strong>losing their capacity over time</strong>&mdash;for instance, a laptop battery in use for a few years does not function as well as a new one.</li>
</ul>
</li>
</ul>
</li>
<li><strong>New Research:</strong><br />
<ul style="list-style-type: circle;">
<li>Researchers <strong>from IIT Guwahati</strong> have developed a technique which can <strong>precisely estimate</strong> one of the most important battery internal states known as <strong>SOC, state of charge.</strong></li>
<li><strong>SOC reflects the remaining capacity of the battery</strong>, that is how much more charge can be withdrawn from the battery before it gets fully discharged.</li>
<li>The knowledge of remaining capacity helps to optimize battery&rsquo;s capacity utilization, prevent overcharging and undercharging of the battery, <strong>increases its lifespan, reduces cost, and ensures safety of the battery and its surroundings.</strong></li>
<li>To improve a battery&rsquo;s lifespan and optimize its capacity, it is <strong>important to predict its various states accurately. One of these states is the SOC</strong>, which has so far been difficult to estimate.</li>
<li>Through their work, the <strong>researchers have proposed</strong> an approach that avoids overestimation and therefore helps in <strong>taking accurate measurements.</strong></li>
</ul>
</li>
</ul>
<div class="border-bg">
<p><strong>State Of Charge</strong></p>
<ul style="list-style-type: square;">
<li>The state of charge (SOC) of a cell denotes the capacity that is currently available as a function of the rated capacity.</li>
<li>The value of the SOC varies between 0% and 100%. If the SOC is 100%, then the cell is said to be fully charged, whereas a SOC of 0% indicates that the cell is completely discharged.</li>
<li>In practical applications, the SOC is not allowed to go beyond 50% and therefore the cell is recharged when the SOC reaches 50%.</li>
<li>Similarly, as a cell starts aging, the maximum SOC starts decreasing. This means that for an aged cell, a 100% SOC would be equivalent to a 75%&ndash;80% SOC of a new cell.</li>
</ul>
</div>
<ul style="list-style-type: square;">
<li><strong>Related Developments:</strong><br />
<ul style="list-style-type: circle;">
<li>The <strong>Johns Hopkins Applied Physics Laboratory</strong> developed <strong>a Lithium-ion battery that does not catch fire.</strong></li>
<li>Earlier in January 2020, researchers from <strong>Australia</strong> claimed that they developed the world&rsquo;s most efficient <strong>lithium-sulfur (Li-S) battery</strong>, capable of powering a smartphone for five continuous days.<br />
<ul style="list-style-type: disc;">
<li>While the materials used in the <strong>Li-S batteries</strong> are not different from those in <strong>Li-ion batteries</strong>, the Australian researchers <strong>reconfigured the design of the sulfur cathodes</strong> (a type of electrical conductor through which electrons move) to accommodate higher stress without a drop in overall capacity.</li>
</ul>
</li>
<li>India, through a newly-floated state-owned company <a href="/daily-updates/daily-news-analysis/lithium-ion-technology" target="_blank" rel="noopener"><strong>Khanij Bidesh India Ltd</strong></a>, has <strong>inked a pact with an Argentine firm</strong> to jointly prospect lithium in Argentina, a country that has the one of the largest reserves of Lithium in the world.</li>
</ul>
</li>
<li><strong>Potential Alternatives to Li-ion Technology:</strong><br />
<ul style="list-style-type: circle;">
<li><strong>Lithium-Sulfur Batteries:</strong><br />
<ul style="list-style-type: disc;">
<li><strong>Li-S batteries</strong> are generally considered <strong>the successors of Li-ion batteries</strong> because of their <strong>lower cost of production, energy efficiency and improved safety.</strong> <br />
<ul style="list-style-type: disc;">
<li>Their cost of production is lower because sulfur is abundantly available.</li>
</ul>
</li>
<li>Even so, there have been some difficulties when it comes to commercialising these batteries, mainly <strong>due to their short life cycle</strong> and poor <strong>instantaneous power capabilities.</strong></li>
</ul>
</li>
<li><strong>Graphene Batteries:</strong><br />
<ul style="list-style-type: disc;">
<li>Graphene batteries may be an important alternative to lithium-ion batteries, with the latter having limitations due to the frequency with which lithium requires charging. Graphene is a newly stabilized and isolated material.</li>
</ul>
</li>
<li><strong>Fluoride Batteries:</strong><br />
<ul style="list-style-type: disc;">
<li>Fluoride Batteries have the potential to last eight times longer than lithium batteries.</li>
</ul>
</li>
<li><strong>Sand Battery:</strong><br />
<ul style="list-style-type: disc;">
<li>This alternative type of lithium-ion battery <strong>uses silicon</strong> to achieve three times better performance than current graphite Li-ion batteries. The battery is still lithium-ion like the one found in a smartphone, but it uses silicon instead of graphite in the anodes.</li>
</ul>
</li>
<li><strong>Ammonia-powered Batteries:</strong><br />
<ul style="list-style-type: disc;">
<li>Ammonia-powered batteries may not be coming any time soon, but the chemical commonly known as a household cleaner is still an alternative to lithium in the way it can power fuel cells in vehicles and other equipment.</li>
<li>If scientists can figure out a way to produce ammonia without creating the greenhouse gas emissions that result right now, they can ship it anywhere in the world to be converted into hydrogen to power those fuel cells.</li>
</ul>
</li>
<li><strong>Vertically Aligned Carbon Nanotube Electrode:</strong><br />
<ul style="list-style-type: disc;">
<li>These are good candidates for lithium-ion battery electrodes which require high rate capability and capacity.</li>
</ul>
</li>
<li><strong>Solid-state Batteries:</strong><br />
<ul style="list-style-type: disc;">
<li>It uses alternatives to aqueous electrolyte solutions, an innovation that could lower the risk of fires, sharply increase energy density and potentially take only 10 minutes to charge an EV, cutting the recharging time by two-thirds.</li>
<li>These cells can extend the driving distance of a compact electric vehicle while maintaining legroom - a quantum leap in battery tech.</li>
</ul>
</li>
</ul>
</li>
</ul>
<p><a href="https://indianexpress.com/article/explained/explained-iit-guwahati-lithium-ion-battery-7267366/" target="_blank" rel="noopener"><strong>Source: IE</strong></a></p>',
		'posturl' => 'research-on-lithium-ion-battery-performance',
		'publishon' => object(Cake\I18n\FrozenTime) {},
		'tag' => 'Growth & Development',
		'[new]' => false,
		'[accessible]' => [
			[maximum depth reached]
		],
		'[dirty]' => [[maximum depth reached]],
		'[original]' => [[maximum depth reached]],
		'[virtual]' => [[maximum depth reached]],
		'[errors]' => [[maximum depth reached]],
		'[invalid]' => [[maximum depth reached]],
		'[repository]' => 'articles'
	
	},
	(int) 7 => object(Cake\ORM\Entity) {

		'article_id' => (int) 8137,
		'category_id' => (int) 15,
		'title' => 'The Big Picture: Economic Recovery for India',
		'description' => '<p style="text-align: center;"><iframe width="560" height="315" src="https://www.youtube.com/embed/aud04jc57JM" title="YouTube video player" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen="allowfullscreen"></iframe></p>
<h3>Why in News</h3>
<p>Recently, the <a href="/important-institutions/drishti-specials-important-institutions-international-institution/international-monetary-fund-imf" target="_blank" rel="noopener"><strong>International Monetary Fund (IMF)</strong> </a>upgraded its <a href="/daily-updates/daily-news-analysis/world-economic-outlook-imf-2" target="_blank" rel="noopener"><strong>FY 2021-22 growth projection for India to 12.5%</strong></a> from <a href="/daily-updates/daily-news-analysis/world-economic-outlook-imf-1" target="_blank" rel="noopener"><strong>11.5% estimated in January.</strong></a></p>
<ul style="list-style-type: square;">
<li>It has also cautioned that the forecast hasn&rsquo;t factored in the severe downside risks arising from the country&rsquo;s ongoing second wave of <a href="/daily-updates/daily-news-editorials/comprehensive-action-plan-for-covid-19" target="_blank" rel="noopener"><strong>Covid-19.</strong></a></li>
</ul>
<h3>Key Points</h3>
<ul style="list-style-type: square;">
<li><strong>World Economic Outlook Report:</strong> The IMF releases this report usually <strong>twice a year </strong>and it <strong>analyzes and predicts global economic developments</strong> during the near and medium term.
<ul style="list-style-type: circle;">
<li>Some high frequency economic indicators in the report are showing robust signs of economic growth of India while the others are bringing out implicit risks to growth from the second wave of the pandemic.</li>
</ul>
</li>
<li><strong>India&rsquo;s Economic Growth:</strong> As per the report findings, Indian economy is expected to grow by 12.5% in 2021 and 6.9% in 2022.
<ul style="list-style-type: circle;">
<li><strong>Growth rate for India in 2021 is stronger than that of China.</strong></li>
<li>The 1% increase in India&rsquo;s economic growth rate forecast came in the background of encouraging signs from some high-frequency indicators.</li>
</ul>
</li>
<li><strong>Global Economic Growth:</strong> The IMF predicted stronger recovery in 2021 and 2022 with growth projected to be 6% in 2021 and 4.4% in 2022.
<ul style="list-style-type: circle;">
<li>In 2020, the global economy contracted by 3.3%.</li>
</ul>
</li>
</ul>
<h3>Global Scenario</h3>
<ul style="list-style-type: square;">
<li><strong>Advanced Economies:</strong> The<strong> USA and Spain</strong> are the only two advanced economies that are expected to have an<strong> economic growth projected above 6%</strong> for FY 2021-22.
<ul style="list-style-type: circle;">
<li>The USA had been able to retain its economy <strong>due to its economy-centered approach amid the pandemic.</strong>
<ul style="list-style-type: disc;">
<li>The strong fiscal support the government had given to their citizens was also helpful.</li>
</ul>
</li>
</ul>
</li>
<li><strong>Emerging Economies:</strong> The developing countries have not been able to perform as good because the pandemic has affected the labour intensive jobs (prevalent in developing countries) more than the capital intensive jobs.
<ul style="list-style-type: circle;">
<li>No developing country other than India has a growth rate projected in double digit figures.</li>
</ul>
</li>
<li><strong>Export-Oriented Economies:</strong> The european countries had a huge demographic crisis therefore the consumption rate was very low.
<ul style="list-style-type: circle;">
<li>In countries like Germany, which is an export-oriented economy, when the pandemic hit, their economy due to lockdowns and import/export restrictions was affected severely.</li>
<li>Export oriented economies which were exporting primary products have also suffered a lot.</li>
</ul>
</li>
</ul>
<h3>India&rsquo;s Economic Growth</h3>
<ul style="list-style-type: square;">
<li><strong>Factors that Increased the Growth Projection:</strong> For India, a good run in the agriculture sector plus no stagnation in the railways, freight revenue, power sectors have led to an increased 1% projection.
<ul style="list-style-type: circle;">
<li>Moreover, the <strong>GST collection for FY 2020-21 was record high</strong> at the value of ₹1.24 lac crore (₹1.24 trillion).</li>
<li>The <strong>exports figures have also seen a huge jump</strong> standing at 31 billion dollar.
<ul style="list-style-type: disc;">
<li>It is a huge increment for the exports which have witnessed a decline for 7 months.</li>
</ul>
</li>
<li>The <strong>Ozone concentration levels, power consumption or labour participation rates have so far remained resilient</strong> to the decline in growth.</li>
<li><strong>Hindrance in Growth due to Pandemic:</strong> The economic growth rate of India (and other countries) is contingent on the rise in covid infection rate and consequent lockdown.</li>
<li>Undoubtedly the growth will be there but the covid is a potential barrier in this growth; the possible challenges posed by Covid 19 cannot be undermined.</li>
</ul>
</li>
<li><strong>Sectors Obstructing the Growth:</strong> The report also shows some warning signals that could hinder the economic growth of the country.
<ul style="list-style-type: circle;">
<li>These indicators include <strong>decline in the retail sector.</strong></li>
<li>Sectors related to<strong> hospitality and transportation are also hit</strong> badly which roughly account for 6% of overall GDP.</li>
<li>In vehicle registration, around 60,000 vehicles were registered on a daily basis in the months of feb-march 2021 which has now come down to 55,000 on a daily basis.</li>
<li>The growth recovery is obvious to be impacted by the rapidly increasing covid-19 disease due to the consequent partial and complete lockdowns and curfews.</li>
</ul>
</li>
</ul>
<div class="border-bg">
<p><strong>Nomura Index Business Resumption Index</strong></p>
<ul style="list-style-type: square;">
<li>The<a href="/daily-updates/daily-news-analysis/growth-in-manufacturing-pmi-and-nibri" target="_blank" rel="noopener"><strong> Nomura India Business Assumption Index (NIBRI)</strong></a> is the Japanese brokerage&rsquo;s weekly tracker of the pace of normalisation of economic activity.
<ul style="list-style-type: circle;">
<li>It captures and tracks demand indicators such as the demand for power, labour force participation etc.</li>
</ul>
</li>
<li>The index reached 99 points in February, 2021 but slipped down to 90 in the month of April which indicates a slowdown in the economic recovery.
<ul style="list-style-type: circle;">
<li>The reason for the slowdown is mainly the second wave of covid-19.</li>
</ul>
</li>
</ul>
</div>
<ul style="list-style-type: square;">
<li><strong>Government Policies:</strong> India has handled the covid-19 situation better than many of the countries with its step by step approach of tackling the situation introducing various economic reforms, the vaccination drive etc.</li>
</ul>
<h3>Way Forward</h3>
<ul style="list-style-type: square;">
<li><strong>Vaccination and Covid-Appropriate Behaviour: <a href="/loksabha-rajyasabha-discussions/the-big-picture-india-and-the-vaccination-drive" target="_blank" rel="noopener">India&rsquo;s vaccination programme</a></strong> is also going on, it is vaccinating nearly 3-4 million people on a daily basis but that is not enough. The need is to build up more capacity and vaccinate more and more people at a faster rate.
<ul style="list-style-type: circle;">
<li>Even after vaccination, no leniency shall be there in following the basic covid appropriate behaviour of wearing a mask, performing social distancing and following hygiene protocols.</li>
<li>Only healthy citizens can utilise up to their full potential and contribute to the overall growth of a country.</li>
</ul>
</li>
<li><strong>Investment-Centered Approach:</strong> The<a href="/daily-updates/daily-news-analysis/restructuring-of-indian-statistical-system" target="_blank" rel="noopener"> NSO</a> has given the investment rate in the economy for FY 2020-21 at only 31% of GDP which is a very low rate of investment for any economy as large as India, therefore investment is the right way forward.
<ul style="list-style-type: circle;">
<li>The FY 2021-22 should be the year of beefing up, strengthening and stepping up the pace of investment in infrastructure and many other projects where India is in the deficit stage.</li>
</ul>
</li>
<li><strong>Reforming the Vaccine Criteria:</strong> The criteria of vaccinating only those people above the age of 45 shall be done away with specially in the covid hotspot areas like Mumbai, Pune and Delhi.
<ul style="list-style-type: circle;">
<li>The working class people in such cities who commute on a daily basis shall be vaccinated at a faster rate and regardless of age.</li>
</ul>
</li>
<li><strong>Managing the Elevated Inflation Levels:</strong> India is at the risk of inflation, it is at an elevated level which is why the RBI has been conservative; it has projected the growth rate at 10.5% only.
<ul style="list-style-type: circle;">
<li>India has to walk on a very fine line balancing the growth imperatives and inflation concerns.</li>
<li>The RBI has also adopted a policy to support economic growth. It has increased the limit of ways and means advances to the states and has allowed them to borrow more amounts from the RBI.</li>
</ul>
</li>
<li><strong>Role of Government Policies:</strong> The growth projection also depends upon policies adopted by the government, specially the fiscal policy and monetary policies.
<ul style="list-style-type: circle;">
<li>So far India has proved to adopt such policies more wisely as compared to other countries.
<ul style="list-style-type: disc;">
<li>India implemented massive economic reforms in the year 2020 when the pandemic was at its peak.</li>
</ul>
</li>
<li>Also, India has freed up a lot of sectors from the over regulation by the government interference which will be fruitful in better and faster economic growth.</li>
</ul>
</li>
</ul>
<h3>Conclusion</h3>
<ul style="list-style-type: square;">
<li>India as the fifth largest economy in the world has to focus on growth recovery that is more sustainable and by just drawing satisfaction from just the growth numbers would not do much.</li>
<li>India is slowly but surely on the path to economic recovery and investment is the way to sustain this growth momentum.</li>
</ul>',
		'posturl' => 'the-big-picture-economic-recovery-for-india',
		'publishon' => object(Cake\I18n\FrozenTime) {},
		'tag' => 'Growth & Development',
		'[new]' => false,
		'[accessible]' => [
			[maximum depth reached]
		],
		'[dirty]' => [[maximum depth reached]],
		'[original]' => [[maximum depth reached]],
		'[virtual]' => [[maximum depth reached]],
		'[errors]' => [[maximum depth reached]],
		'[invalid]' => [[maximum depth reached]],
		'[repository]' => 'articles'
	
	},
	(int) 8 => object(Cake\ORM\Entity) {

		'article_id' => (int) 8136,
		'category_id' => (int) 21,
		'title' => 'National Supercomputing Mission',
		'description' => '<h3>Why in News</h3>
<p>The <strong>second phase of the National Supercomputing Mission (NSM) will be completed by September 2021,</strong> taking India&rsquo;s total computational capacity to <strong>16 Petaflops.</strong></p>
<h3>Key Points</h3>
<ul style="list-style-type: square;">
<li><strong>About the National Supercomputing Mission (NSM):</strong><br />
<ul style="list-style-type: circle;">
<li><strong>Launch:</strong> NSM was<strong> announced in 2015,</strong> with an <strong>aim</strong> to connect national academic and R&amp;D institutions with a grid of more than 70 high-performance computing facilities at an estimated cost of Rs. 4,500 crores <strong>over the period of seven years by 2022.</strong><br />
<ul style="list-style-type: disc;">
<li>It<strong> supports the government's vision of <a href="/loksabha-rajyasabha-discussions/in-depth-digital-india" target="_blank" rel="noopener">'Digital India'</a> and <a href="/daily-updates/daily-news-editorials/five-years-of-make-in-india" target="_blank" rel="noopener">'Make in India'</a>.</strong></li>
</ul>
</li>
<li><strong>Implementation:</strong> NSM is <strong>jointly steered by the Ministry of Electronics and IT (MeitY) and Department of Science and Technology</strong> (DST - Ministry of Science and Technology) and implemented by the <a href="/daily-updates/daily-news-analysis/jatan-virtual-museum-software" target="_blank" rel="noopener"><strong>Centre for Development of Advanced Computing (C-DAC)</strong></a>, Pune and the Indian Institute of Science (IISc), Bengaluru.</li>
<li><strong>Features:</strong> <br />
<ul style="list-style-type: disc;">
<li>It is also an effort <strong>to improve the number of supercomputers</strong> owned by India.</li>
<li>These supercomputers will also be networked on the National Supercomputing grid over the<strong> National Knowledge Network (NKN).</strong> The NKN connects academic institutions and R&amp;D labs over a high-speed network.</li>
<li>Under NSM, the long-term plan is to build a strong base of 20,000 skilled persons over the next five years who will be equipped to handle the complexities of supercomputers.</li>
</ul>
</li>
</ul>
</li>
<li><strong>Progress of NSM:</strong><br />
<ul style="list-style-type: circle;">
<li>In the first phase,<strong> PARAM Shivay, PARAM Shakti, PARAM Brahma, PARAM Yukti and PARAM Sanganak</strong> were deployed at IIT (BHU), IIT Kharagpur, Indian Institute of Science Education and Research, Pune, and Jawaharlal Nehru Centre for Advanced Research.</li>
<li>Recently,<a href="/daily-updates/daily-news-analysis/supercomputer-param-siddhi" target="_blank" rel="noopener"><strong> PARAM-Siddhi AI</strong></a>, has been <strong>ranked 63<sup>rd</sup> in the Top 500 list of most powerful supercomputers</strong> in the world. It was developed under the NSM.</li>
</ul>
</li>
<li><strong>Recent Development:</strong><br />
<ul style="list-style-type: circle;">
<li>In October 2020, <strong>C-DAC had inked MoUs with IITs</strong> along with <strong>IISc, National Agri-Food Biotechnology Institute and NIT, Tiruchirapalli</strong> &mdash; where a High Power Computing (HPC) system in each institute is currently being installed.</li>
<li>So far, <strong>over 4,500 people have been trained in HPC</strong> and further training in <a href="/loksabha-rajyasabha-discussions/in-depth-artificial-intelligence" target="_blank" rel="noopener"><strong>Artificial Intelligence</strong></a> will be held at specia<strong>l NSM nodal centres</strong> established at four IITs &mdash; <strong>Kharagpur, Madras, Goa and Palakkad.</strong></li>
</ul>
</li>
<li><strong>Challenges:</strong><br />
<ul style="list-style-type: circle;">
<li>The NSM envisages setting up a network of 70 high-performance computing facilities in the country but <strong>skewed funding for the mission</strong> during the initial years slowed down the overall pace of building supercomputers.</li>
<li><strong>Only 16.67% of the total budget of Rs. 4,500 crore,</strong> was utilised during the first four-and-a-half years for execution of the mission.</li>
</ul>
</li>
<li><strong>Global Scenario:</strong><br />
<ul style="list-style-type: circle;">
<li>Globally, <strong>China</strong> has the maximum number of supercomputers and maintains the <strong>top position</strong> in the world, <strong>followed</strong> by the <strong>US, Japan, France, Germany, Netherlands, Ireland and the United Kingdom.</strong></li>
</ul>
</li>
</ul>
<p><a href="https://indianexpress.com/article/india/national-supercomputing-mission-to-enter-final-phase-in-september-7270718/" target="_blank" rel="noopener"><strong>Source:IE</strong></a></p>',
		'posturl' => 'national-supercomputing-mission-2',
		'publishon' => object(Cake\I18n\FrozenTime) {},
		'tag' => 'Growth & Development',
		'[new]' => false,
		'[accessible]' => [
			[maximum depth reached]
		],
		'[dirty]' => [[maximum depth reached]],
		'[original]' => [[maximum depth reached]],
		'[virtual]' => [[maximum depth reached]],
		'[errors]' => [[maximum depth reached]],
		'[invalid]' => [[maximum depth reached]],
		'[repository]' => 'articles'
	
	},
	(int) 9 => object(Cake\ORM\Entity) {

		'article_id' => (int) 8125,
		'category_id' => (int) 21,
		'title' => 'Potential of Lighthouses for Tourism: Sagarmala',
		'description' => '<h3>Why in News</h3>
<p>The <strong>Union Ministry of Ports, Shipping and Waterways</strong> seeks to <strong>develop 65 lighthouses</strong> on public-private-partnership mode. <strong>Odisha&rsquo;s five lighthouses</strong> present huge potential for tourism.</p>
<ul style="list-style-type: square;">
<li>The Ministry wants to develop lighthouses as hubs of tourism under the <a href="/daily-updates/daily-news-analysis/sagarmala-seaplane-services" target="_blank" rel="noopener"><strong>Sagarmala project</strong></a>.</li>
</ul>
<h3>Key Points</h3>
<ul style="list-style-type: square;">
<li><strong>Five lighthouses of Odisha:</strong><br />
<ul style="list-style-type: circle;">
<li><strong>&lsquo;False Point&rsquo; island lighthouse:</strong> It is situated off the Kendrapara coast. It is the British era lighthouse and its location close to massive <a href="/daily-updates/daily-news-analysis/coringa-mangroves#:~:text=Mangrove%20forests%20perform%20multiple%20ecological,sediment%20to%20form%20new%20land" target="_blank" rel="noopener"><strong>mangrove vegetation</strong></a> infested with <a href="/daily-updates/daily-news-analysis/world-crocodile-day" target="_blank" rel="noopener"><strong>crocodiles</strong></a> makes it an adventurous tourist place on the eastern coast.</li>
<li><strong>Paradip lighthouse:</strong> It also holds tourism potential because of its proximity to the port town and Cuttack and Bhubaneswar cities (100 km). It was commissioned in the 1980s.</li>
<li><strong>Gopalpur lighthouse:</strong> It is located in Ganjam district. If it is developed as a place of tourist interest, the <strong><a href="/daily-updates/daily-news-analysis/odisha-s-lake-conservation" target="_blank" rel="noopener">Chilika Lake</a> and the Gopalpur beach</strong> will be added attractions.</li>
<li><strong>Chandrabhaga lighthouse:</strong> It is 10 km from the world famous <a href="/to-the-points/paper1/konark-temple" target="_blank" rel="noopener"><strong>Konark temple</strong></a>. It had withstood the severity of cyclones such as the Super Cyclone (1999), Phailin (2013) and <a href="/daily-updates/daily-news-analysis/cyclone-fani" target="_blank" rel="noopener">Fani</a> (2019).</li>
<li><strong>Puri lighthouse:</strong> It is 4 km from the 12th century <a href="/daily-updates/daily-news-analysis/jagannath-temple" target="_blank" rel="noopener"><strong>Shree Jagannath Temple</strong></a>, which is also a tourist place.</li>
</ul>
</li>
<li><strong>Lighthouse Tourism in India:</strong><br />
<ul style="list-style-type: circle;">
<li><strong>Number of Lighthouses:</strong> India has as many as 189 lighthouses dotting its vast coastline including the Andaman and Nicobar Islands in the Bay of Bengal and Lakshadweep Islands in the Arabian Sea.</li>
<li><strong>Objectives for Promoting Lighthouse based Tourism:</strong><br />
<ul style="list-style-type: disc;">
<li>To <strong>enhance &amp; develop the existing lighthouses &amp; its surrounding areas</strong> into a Tourism Destination, Maritime Landmark, and Heritage Precinct.</li>
<li>To<strong> develop allied Maritime Infrastructure</strong> like National Maritime Museums &amp; National Lighthouse Museums.</li>
<li>To explore the possibilities of developing these projects under various modes including the possibilities of <strong>Public Private Partnership (PPP)</strong> by integrating commercially viable interventions at the feasible locations in order to make the project viable.</li>
</ul>
</li>
<li><strong>Advantages:</strong><br />
<ul style="list-style-type: circle;">
<li>The advantages behind creation of lighthouses into a tourism product are that it shall <strong>help in attracting tourists</strong> from across the world &amp; locally and thereby create a source of revenue for the government, <strong>employment opportunities for local people, increase in commerce</strong> through purchase and sale of goods and services, etc.</li>
</ul>
</li>
</ul>
</li>
</ul>
<div class="border-bg">
<p><strong>Sagarmala Project</strong></p>
<ul style="list-style-type: square;">
<li><strong>About:</strong> <br />
<ul style="list-style-type: circle;">
<li>The Sagarmala Programme was <strong>approved by the Union Cabinet in 2015</strong> which aims at holistic port infrastructure development along the 7,516-km long coastline through modernisation, mechanisation and computerisation.</li>
<li>The vision of the Sagarmala Programme is to <strong>reduce logistics cost for EXIM</strong> (Export-Import) and <strong>domestic trade</strong> with minimal infrastructure investment.</li>
<li>Sagarmala <strong>could boost India&rsquo;s merchandise exports</strong> to USD 110 billion by 2025 and create an estimated 10 million new jobs (four million in direct employment).</li>
</ul>
</li>
</ul>
<p><a href="http://www.drishtiias.com/images/uploads/1618224639_image4.png" target="_blank" rel="noopener"><img class="content-img" src="http://www.drishtiias.com/images/uploads/1618224639_image4.png" style="display: block; margin-left: auto; margin-right: auto;" width="753" height="295" /></a></p>
<ul style="list-style-type: square;">
<li><strong>Components of the Sagarmala Programme:</strong><br />
<ul style="list-style-type: circle;">
<li><strong>Port Modernization &amp; New Port Development:</strong> De-bottlenecking and capacity expansion of existing ports and development of new Greenfield ports.</li>
<li><strong>Port Connectivity Enhancement:</strong> Enhancing the connectivity of the ports to the hinterland, optimizing cost and time of cargo movement through multi-modal logistics solutions including domestic waterways (inland water transport and coastal shipping).</li>
<li><strong>Port-linked Industrialization:</strong> Developing port-proximate industrial clusters and Coastal Economic Zones to reduce logistics cost and time of EXIM and domestic cargo.</li>
<li><strong>Coastal Community Development:</strong> Promoting sustainable development of coastal communities through skill development &amp; livelihood generation activities, fisheries development, coastal tourism etc.</li>
<li><strong>Coastal Shipping &amp; Inland Waterways Transport:</strong> Impetus to move cargo through the sustainable and environment-friendly coastal and inland waterways mode.</li>
</ul>
</li>
</ul>
<p><strong>Public-Private Partnerships</strong></p>
<ul style="list-style-type: square;">
<li>Public-private partnerships involve <strong>collaboration between a government agency and a private-sector company</strong> that can be used to finance, build, and operate projects, such as public transportation networks, parks, and convention centers.</li>
<li>Financing a project through a public-private partnership can <strong>allow a project to be completed sooner or make it a possibility in the first place</strong>.</li>
<li>Public-private partnerships <strong>often involve concessions of tax</strong> or other operating revenue, protection from liability, or partial ownership rights over nominally public services and property <strong>to private sector</strong>, for-profit entities.</li>
<li>It can create <strong>complex principal-agent problems,</strong> such as corrupt dealings, pay-offs to political cronies, etc.</li>
<li><a href="/to-the-points/paper3/ppp-investment-model#:~:text=Public%2DPrivate%20Partnership%20Model%3A%20PPP,be%20completed%20with%20private%20funding." target="_blank" rel="noopener"><strong>Commonly adopted model of PPPs</strong></a> include Build-Operate-Transfer (BOT) ,Build-Own-Operate (BOO), Build-Operate-Lease-Transfer (BOLT), Design-Build-Finance-Operate-Transfer (DBFOT), Lease-Develop-Operate (LDO), Operate-Maintain-Transfer (OMT), etc.</li>
</ul>
</div>
<p><a href="https://www.thehindu.com/news/national/other-states/lighthouses-in-odisha-hold-huge-tourism-potential/article34296290.ece" target="_blank" rel="noopener"><strong>Source: TH</strong></a></p>',
		'posturl' => 'potential-of-lighthouses-for-tourism-sagarmala',
		'publishon' => object(Cake\I18n\FrozenTime) {},
		'tag' => 'Growth & Development',
		'[new]' => false,
		'[accessible]' => [
			[maximum depth reached]
		],
		'[dirty]' => [[maximum depth reached]],
		'[original]' => [[maximum depth reached]],
		'[virtual]' => [[maximum depth reached]],
		'[errors]' => [[maximum depth reached]],
		'[invalid]' => [[maximum depth reached]],
		'[repository]' => 'articles'
	
	},
	(int) 10 => object(Cake\ORM\Entity) {

		'article_id' => (int) 8121,
		'category_id' => (int) 21,
		'title' => 'Global Minimum Corporate Tax',
		'description' => '<h3>Why in News</h3>
<p>The US Treasury Secretary has urged <a href="/important-institutions/drishti-specials-important-institutions-international-institution/important-institution-upsc-ias-g20-significance-global-groupings-member-challenges-buenos-aires-gs-mains-paper-ii-2-international-relations" target="_blank" rel="noopener"><strong>G20 nations</strong></a> to move towards a <strong>global minimum corporate tax</strong>.</p>
<ul style="list-style-type: square;">
<li>It is <strong>an attempt to reverse a &ldquo;30-year race to the bottom&rdquo;</strong> in which countries have resorted to slashing corporate tax rates to attract multinational corporations (MNCs).</li>
</ul>
<h3>Key Points</h3>
<ul style="list-style-type: square;">
<li><strong>Proposal on a Global Minimum Corporate Tax Rate:</strong> <br />
<ul style="list-style-type: circle;">
<li>The US proposal envisages a <strong>21% minimum corporate tax rate, coupled with cancelling exemptions on income from countries</strong> that do not legislate a minimum tax to discourage the shifting of multinational operations and profits overseas.</li>
<li>The proposal for a minimum corporate tax is <strong>tailored to address the low effective rates of tax shelled out by some of the world&rsquo;s biggest corporations,</strong> including digital giants such as Apple, Alphabet and Facebook, as well as major corporations such as Nike and Starbucks. <br />
<ul style="list-style-type: disc;">
<li>These companies typically <strong>rely on complex webs of subsidiaries to hoover profits out of major markets into low-tax countries</strong> such as Ireland or Caribbean nations such as the British Virgin Islands or the Bahamas, or to central American nations such as Panama.</li>
</ul>
</li>
</ul>
</li>
<li><strong>US&rsquo; Reasons for the Proposal:</strong><br />
<ul style="list-style-type: circle;">
<li>The proposal <strong>aims to somewhat offset any disadvantages</strong> that might arise from the <strong>proposed increase in the US corporate tax rate</strong>. <br />
<ul style="list-style-type: disc;">
<li>The proposed increase to 28% from 21% would partially reverse the previous cut in tax rates on companies from 35% to 21% by way of a 2017 tax legislation.</li>
</ul>
</li>
<li>The increase in corporation tax <strong>comes at a time when the pandemic is costing governments across the world,</strong> and is also timed with the US&rsquo;s push for a USD 2.3 trillion infrastructure upgrade proposal.</li>
</ul>
</li>
<li><strong>Significance:</strong><br />
<ul style="list-style-type: circle;">
<li>A global compact on this issue, at the time of pandemic, <strong>will work well for the US government and for most other countries in western Europe,</strong> even as some low-tax European jurisdictions such as the Netherlands, Ireland and Luxembourg and some in the Caribbean rely largely on <strong>tax rate arbitrage</strong> to attract MNCs.</li>
<li>The plan to peg a minimum tax on overseas corporate income <strong>seeks to potentially make it difficult for corporations to shift earnings offshore</strong>.</li>
<li>The <strong>average headline corporate tax rate in advanced economies has fallen</strong> from 32% in 2000 to just over 23% by 2018.<br />
<ul style="list-style-type: disc;">
<li>That is largely because <strong>smaller countries such as Ireland, the Netherlands and Singapore have attracted footloose businesses by offering low corporate tax rates</strong>. <br />
<ul style="list-style-type: disc;">
<li>Footloose industry is a general term for an industry that can be placed and located at any location without effect from factors such as resources or transport.</li>
</ul>
</li>
<li><strong>Multinational companies</strong> with increasingly intangible assets such as the global tech firms <strong>have shifted some actual business and a lot of profits into these tax havens and low-tax jurisdictions,</strong> lowering their global tax bills.</li>
</ul>
</li>
</ul>
</li>
<li><strong>International Response:</strong><br />
<ul style="list-style-type: circle;">
<li>The European Commission backed the proposal, but the global minimum rate should be decided after discussions in the <a href="/daily-updates/daily-news-analysis/oecds-forecast-for-global-economy-in-2060" target="_blank" rel="noopener"><strong>Organisation for Economic Cooperation and Development</strong></a> (OECD).<br />
<ul style="list-style-type: disc;">
<li>The European nations, including Germany and France have supported the US proposal.</li>
<li>The OECD and Group of Twenty (G20) have been leading the <strong>Base Erosion and Profit Shifting (BEPS) initiative</strong>&mdash;a multilateral negotiation with over 135 countries, including the United States&mdash;since 2013.</li>
<li><strong>BEPS</strong> refers to tax planning strategies used by multinational enterprises that exploit gaps and mismatches in tax rules to avoid paying tax.</li>
</ul>
</li>
<li><strong>China</strong> is not likely to have a serious objection with the US call, but an <strong>area of concern</strong> for Beijing would be the <strong>impact of such a tax stipulation on Hong Kong</strong>, the seventh-largest tax haven in the world and the largest in Asia.</li>
<li>The US proposal also has support from the <a href="/important-institutions/drishti-specials-important-institutions-international-institution/international-monetary-fund-imf" target="_blank" rel="noopener"><strong>International Monetary Fund (IMF)</strong></a>.</li>
</ul>
</li>
<li><strong>Challenges:</strong><br />
<ul style="list-style-type: circle;">
<li>The proposal <strong>impinges on the right of the sovereign to decide a nation&rsquo;s tax policy</strong>. <br />
<ul style="list-style-type: disc;">
<li>Taxation is ultimately a sovereign function, and depending upon the needs and circumstances of the nation, the government is open to participate and engage in the emerging discussions globally around the corporate tax structure.</li>
</ul>
</li>
<li>A global minimum rate <strong>would essentially take away a tool that countries use to push policies that suit them</strong>. A lower tax rate is a tool they can use to alternatively push economic activity.<br />
<ul style="list-style-type: disc;">
<li>For instance, in the backdrop of the pandemic, IMF and World Bank data suggest that developing countries with less ability to offer mega stimulus packages may experience a longer economic hangover than developed nations.</li>
<li>Also, a global minimum tax rate <strong>will do little to tackle tax evasion</strong>.</li>
</ul>
</li>
</ul>
</li>
</ul>
<h3>India&rsquo;s Position</h3>
<ul style="list-style-type: square;">
<li><strong>Cut in Corporate Tax:</strong> <br />
<ul style="list-style-type: circle;">
<li>In a bid to revive investment activity, the Finance Minister announced, in September 2019, a sharp cut in corporate taxes for domestic companies to 22% and for new domestic manufacturing companies to 15%. <br />
<ul style="list-style-type: disc;">
<li>The <strong>Taxation Laws (Amendment) Act, 2019</strong> resulted in the insertion of a section (115BAA) to the Income-Tax Act, 1961 to provide for the concessional tax rate of 22% for existing domestic companies subject to certain conditions including that they do not avail of any specified incentive or deductions.</li>
<li>Also, the existing domestic companies opting for the concessional taxation regime will <strong>not be required to pay any Minimum Alternate Tax</strong>.</li>
</ul>
</li>
<li>The cuts effectively <strong>brought India&rsquo;s headline corporate tax rate broadly at par with the average 23% rate in Asian countries</strong>. <br />
<ul style="list-style-type: disc;">
<li>China and South Korea have a tax rate of 25% each, while Malaysia is at 24%, Vietnam at 20%, Thailand at 20% and Singapore at 17%.</li>
<li>The effective tax rate, inclusive of surcharge and cess, for Indian domestic companies is around 25.17%.</li>
<li>The average corporate tax rate stands at around 29% for existing companies that are claiming some benefit or the other.</li>
</ul>
</li>
</ul>
</li>
<li><strong>Equalisation Levy:</strong> <br />
<ul style="list-style-type: circle;">
<li>To <strong>address the challenges posed by the enterprises who conduct their business through digital means</strong> and carry out activities in the country remotely, the government has the <a href="/daily-updates/daily-news-analysis/equalisation-levy-for-non-resident-e-commerce-firms" target="_blank" rel="noopener"><strong>&lsquo;Equalisation Levy&rsquo;</strong></a>.</li>
<li>The equalization levy is <strong>aimed at taxing foreign companies which have a significant local client base in India</strong> but are billing them through their offshore units, effectively escaping the country&rsquo;s tax system.</li>
<li>The Income-tax Act, 1961 has been amended to bring in the concept of <strong>&ldquo;Significant Economic Presence&rdquo;</strong> for establishing &ldquo;business connection&rdquo; in the case of non-residents in India.</li>
</ul>
</li>
<li><strong>Agreements for Exchange of Information:</strong> <br />
<ul style="list-style-type: circle;">
<li>India has been proactively engaging with foreign governments with a view to facilitating and enhancing exchange of information under <strong>Double Taxation Avoidance Agreements, Tax Information Exchange Agreements and Multilateral Conventions</strong> to plug loopholes. <br />
<ul style="list-style-type: disc;">
<li>Such agreements <strong>promote cooperation in tax matters</strong>.</li>
</ul>
</li>
<li>Besides, <strong>effective enforcement actions</strong> including expeditious investigation in foreign assets cases have been launched, including searches, enquiries, levy of taxes, penalties, etc.</li>
</ul>
</li>
</ul>
<div class="border-bg">
<p><strong>Corporate Tax</strong></p>
<ul style="list-style-type: square;">
<li>Corporation Tax or Corporate Tax is a <strong>direct tax levied on the net income or profit of a corporate entity</strong> from their business, foreign or domestic.</li>
<li>The rate at which the tax is imposed as per the provisions of the Income Tax Act, 1961 is known as the Corporate Tax Rate.</li>
<li>The Corporate Tax rate is based on a slab rate system depending on the type of corporate entity and the different revenues earned by each of corporate entities.</li>
</ul>
<p><strong>Minimum Alternate Tax</strong></p>
<ul style="list-style-type: square;">
<li>At times it may happen that a taxpayer, being a company, may have generated income during the year, but by taking the advantage of various provisions of Income-tax Law (like exemptions, deductions, depreciation, etc.), it may have reduced its tax liability or may not have paid any tax at all.</li>
<li>Due to an increase in the number of zero tax paying companies, Minimum Alternate Tax (MAT) was introduced by the Finance Act, 1987 with effect from assessment year 1988-89. Later on, it was withdrawn by the Finance Act, 1990 and then reintroduced by Finance Act, 1996.</li>
<li>MAT is <strong>calculated at 15% on the book profit</strong> (the profit shown in the profit and loss account) or at the usual corporate rates, and whichever is higher is payable as tax.</li>
<li>All companies in India, whether domestic or foreign, fall under this provision. MAT was later extended to cover non-corporate entities as well.</li>
<li>MAT is an important tool with which tax avoidance can be prevented.</li>
</ul>
<p><strong>Domestic Company</strong></p>
<ul style="list-style-type: square;">
<li>Domestic company is one which is <strong>registered under the Companies Act of India (2013)</strong> and also includes the company registered in the foreign countries having control and management wholly situated in India.</li>
<li>A domestic company includes private as well as public companies.</li>
</ul>
<p><strong>Foreign Company</strong></p>
<ul style="list-style-type: square;">
<li>Foreign company is one which is not registered under the Companies Act of India and has control &amp; management located outside India.</li>
</ul>
<p><strong>Tax Heaven</strong></p>
<ul style="list-style-type: square;">
<li>A tax haven is generally an offshore country that offers foreign individuals and businesses little or no tax liability in a politically and economically static environment.</li>
</ul>
</div>
<p><a href="https://indianexpress.com/article/explained/explained-bidens-radical-tax-proposal-7266899/" target="_blank" rel="noopener"><strong>Source: IE</strong></a></p>',
		'posturl' => 'global-minimum-corporate-tax',
		'publishon' => object(Cake\I18n\FrozenTime) {},
		'tag' => 'Growth & Development',
		'[new]' => false,
		'[accessible]' => [
			[maximum depth reached]
		],
		'[dirty]' => [[maximum depth reached]],
		'[original]' => [[maximum depth reached]],
		'[virtual]' => [[maximum depth reached]],
		'[errors]' => [[maximum depth reached]],
		'[invalid]' => [[maximum depth reached]],
		'[repository]' => 'articles'
	
	},
	(int) 11 => object(Cake\ORM\Entity) {

		'article_id' => (int) 8115,
		'category_id' => (int) 21,
		'title' => 'Fall in International Crude Oil Prices',
		'description' => '<h3>Why in News</h3>
<p>Recent fall in international crude oil prices has reversed a <strong>six-month trend</strong> of <a href="/daily-updates/daily-news-analysis/impact-of-crude-oil-price-hike#:~:text=According%20to%20estimates%2C%20a%20one,54.8%20barrel%20for%20January%202021." target="_blank" rel="noopener"><strong>rising auto fuel prices</strong></a> which saw the prices of petrol and diesel hit all-time highs across the country.</p>
<ul style="list-style-type: square;">
<li>The price of <strong>Brent crude</strong> has <strong>fallen under USD 63 per barrel from a high of USD 70 per barrel in early March 2021</strong>.</li>
<li>Two crude oils which are either traded themselves or whose prices are reflected in other types of crude oil include <a href="/daily-updates/daily-news-analysis/oil-prices-below-zero" target="_blank" rel="noopener"><strong>West Texas Intermediate (WTI) and Brent</strong></a>.</li>
</ul>
<h3>Key Points</h3>
<ul style="list-style-type: square;">
<li><strong>Oil Pricing:</strong><br />
<ul style="list-style-type: square;">
<li>Generally, the <a href="/daily-updates/daily-news-analysis/talks-on-oil-cut-deal-at-g-20" target="_blank" rel="noopener"><strong>Organization of the Petroleum Exporting Countries (OPEC)</strong></a> used to work as a cartel and fix prices in a favourable band.<br />
<ul style="list-style-type: square;">
<li><strong>OPEC is led by Saudi Arabia</strong>, which is the largest exporter of crude oil in the world (single-handedly exporting 10% of the global demand).</li>
<li><strong>OPEC has a total of 13 Member Countries</strong> viz. Iran, Iraq, Kuwait, United Arab Emirates (UAE), Saudi Arabia, Algeria, Libya, Nigeria, Gabon, Equatorial Guinea, Republic of Congo, Angola, and Venezuela.</li>
</ul>
</li>
<li>OPEC <strong>could bring down prices by increasing oil production and raise prices by cutting production</strong>.</li>
<li>The<strong> global oil pricing mainly depends upon the partnership between the global oil exporters</strong> instead of a well-functioning competition.</li>
<li>Cutting oil production or completely shutting down an oil well is a difficult decision, because restarting it is immensely costly and complicated.<br />
<ul style="list-style-type: square;">
<li>Moreover, if a country cuts production, it risks losing market share if other countries do not follow the suit.</li>
</ul>
</li>
<li>Recently, OPEC has been working with Russia, as <a href="/daily-updates/daily-news-analysis/opec" target="_blank" rel="noopener"><strong>OPEC+</strong></a> to fix the global prices and supply.<br />
<ul style="list-style-type: square;">
<li>In 2016, OPEC allied with other top non-OPEC oil-exporting nations to form an even more powerful entity named OPEC+ or OPEC Plus.</li>
</ul>
</li>
</ul>
</li>
<li><strong>Reason for the Fall:</strong><br />
<ul style="list-style-type: square;">
<li><strong>Resurgence in Covid Infections:</strong><br />
<ul style="list-style-type: square;">
<li>A recent resurgence in <strong>Covid-19 infections</strong> coupled with a decision by OPEC+ to <strong>increase crude oil production</strong> has contributed to a fall in crude oil prices. <br />
<ul style="list-style-type: square;">
<li>OPEC+ has announced a <strong>phased withdrawal of production cuts</strong> which would see total crude oil production by the group of countries rise by 1.1 million barrels per day by July 2021.</li>
</ul>
</li>
</ul>
</li>
<li><strong>Recovery in Supply:</strong><br />
<ul style="list-style-type: square;">
<li>The <strong>recovery in supply without a similar recovery in demand</strong> has contributed to the recent correction in crude oil prices and that supply cuts were difficult to maintain for oil-producing countries given the global macroeconomic situation.<br />
<ul style="list-style-type: square;">
<li>Recent US data has also indicated that <strong>gasoline inventories are rising faster</strong> than the fall in crude oil inventories raising concerns of waning demand for petroleum products.</li>
<li><strong>US crude oil production capacity has recovered to about 11 million barrels per day</strong> after abnormally cold weather in February 2021 forced US crude oil output down to 9.7 million barrels per day.</li>
</ul>
</li>
</ul>
</li>
</ul>
</li>
<li><strong>Impact on India:</strong><br />
<ul style="list-style-type: square;">
<li><strong>Current Account Deficit:</strong> <br />
<ul style="list-style-type: square;">
<li>The <strong>decrease in oil prices will decrease the country&rsquo;s import bill,</strong> and will help in reducing its <a href="/daily-updates/daily-news-analysis/current-account-deficit" target="_blank" rel="noopener"><strong>current account deficit</strong></a> (excess of imports of goods and services over exports).<br />
<ul style="list-style-type: square;">
<li>According to estimates, a <strong>one-dollar increase in crude oil price increases the oil bill by around USD 1.6 billion per year</strong>.</li>
<li><strong>India imports 80% of its crude oil</strong> requirements.</li>
</ul>
</li>
</ul>
</li>
<li><strong>Inflation:</strong> <br />
<ul style="list-style-type: square;">
<li>The <strong>decrease in crude prices could also also further decrease <a href="/daily-updates/daily-news-analysis/inflation-data-august-2020" target="_blank" rel="noopener">inflationary pressures</a></strong> that have been building up over the past few months.</li>
<li>This will increase the space for the <a href="/daily-updates/daily-news-analysis/rbi-monetary-policy-2021" target="_blank" rel="noopener"><strong>monetary policy committee</strong></a> to ease policy rates further.</li>
</ul>
</li>
<li><strong>Fiscal Health:</strong> <br />
<ul style="list-style-type: square;">
<li>If oil prices would have continued to increase, <strong>the government would have been forced to cut taxes on petroleum and diesel</strong> which might have caused <strong>loss of revenue</strong> and <strong>deteriorated its fiscal balance</strong>.</li>
<li>The revenue lost will erode the government&rsquo;s ability to spend or meet its fiscal commitments in the form of budgetary transfers to states, payment of dues and compensation for revenue shortfalls to state governments under the <a href="/to-the-points/paper3/goods-and-services-tax-gst-1" target="_blank" rel="noopener"><strong>Goods and Services Tax (GST)</strong></a> framework.</li>
</ul>
</li>
</ul>
</li>
</ul>
<div class="border-bg">
<p><strong>Brent and West Texas Intermediate (WTI)</strong></p>
<ul style="list-style-type: square;">
<li><strong>Origin:</strong><br />
<ul style="list-style-type: square;">
<li><strong>Brent crude oil originates from oil fields in the North Sea</strong> between the Shetland Islands and Norway.</li>
<li><strong>WTI is sourced from US oil fields,</strong> primarily in Texas, Louisiana, and North Dakota.</li>
</ul>
</li>
<li><strong>Light and Sweet:</strong><br />
<ul style="list-style-type: square;">
<li>Both oils are relatively light, but <strong>Brent has a slightly higher API gravity, making WTI the lighter of the two</strong>.<br />
<ul style="list-style-type: square;">
<li><strong>American Petroleum Institute (API) gravity</strong> is an indicator of the density of crude oil or refined products.</li>
</ul>
</li>
<li><strong>WTI with a lower sulphur content</strong> (0.24%) than Brent (0.37%), is considered <strong>"sweeter"</strong>.</li>
</ul>
</li>
<li><strong>Benchmark Prices:</strong><br />
<ul style="list-style-type: square;">
<li><strong>Brent crude price</strong> is the international benchmark price <strong>used by the OPEC</strong> while <strong>WTI crude price is a benchmark for US oil prices</strong>.</li>
<li>Since India imports primarily from OPEC countries, <strong>Brent is the benchmark for oil prices in India</strong>.</li>
</ul>
</li>
<li><strong>Cost of Shipping:</strong><br />
<ul style="list-style-type: square;">
<li><strong>Cost of shipping for Brent crude is typically lower,</strong> since it is produced near the sea and it can be put on ships immediately.</li>
<li><strong>Shipping of WTI is priced higher</strong> since it is produced in landlocked areas like Cushing, Oklahoma where the storage facilities are limited.</li>
</ul>
</li>
</ul>
</div>
<p><a href="https://indianexpress.com/article/explained/explained-why-crude-oil-prices-are-falling-and-how-it-will-impact-fuel-prices-in-india-7265507/" target="_blank" rel="noopener"><strong>Source: IE</strong></a></p>',
		'posturl' => 'fall-in-international-crude-oil-prices',
		'publishon' => object(Cake\I18n\FrozenTime) {},
		'tag' => 'Growth & Development',
		'[new]' => false,
		'[accessible]' => [
			[maximum depth reached]
		],
		'[dirty]' => [[maximum depth reached]],
		'[original]' => [[maximum depth reached]],
		'[virtual]' => [[maximum depth reached]],
		'[errors]' => [[maximum depth reached]],
		'[invalid]' => [[maximum depth reached]],
		'[repository]' => 'articles'
	
	},
	(int) 12 => object(Cake\ORM\Entity) {

		'article_id' => (int) 8112,
		'category_id' => (int) 21,
		'title' => 'Monetary Policy Report: RBI',
		'description' => '<h3>Why in News</h3>
<p>The<a href="/important-institutions/drishti-specials-important-institutions-national-institutions/important-institutions-national-institution-reserve-bank-of-india" target="_blank" rel="noopener"><strong> Reserve Bank of India (RBI)</strong></a> has released the <a href="/daily-updates/daily-news-analysis/monetary-policy-report-rbi" target="_blank" rel="noopener"><strong>Monetary Policy Report</strong></a> for the month of April 2021.</p>
<h3>Key Points</h3>
<ul style="list-style-type: square;">
<li><strong>Unchanged Policy Rates:</strong><br />
<ul style="list-style-type: circle;">
<li><strong>Repo Rate</strong> - 4%.</li>
<li><strong>Reverse Repo Rate</strong> - 3.35%.</li>
<li><strong>Marginal Standing Facility (MSF)</strong> - 4.25%.</li>
<li><strong>Bank Rate-</strong> 4.25%.</li>
</ul>
</li>
<li><strong>GDP Projection:</strong><br />
<ul style="list-style-type: circle;">
<li>Real <a href="/daily-updates/daily-news-analysis/gdp-decreases-to-11-year-low" target="_blank" rel="noopener"><strong>Gross Domestic Product (GDP)</strong></a> growth for 2021-22 has been retained at <strong>10.5%.</strong></li>
</ul>
</li>
<li><strong>Inflation:</strong><br />
<ul style="list-style-type: circle;">
<li>RBI has revised the projection for <a href="/daily-updates/daily-news-analysis/data-on-retail-inflation-and-factory-output#:~:text=Measured%20by%20the%20Consumer%20Price,)%20upper%20margin%20of%206%25." target="_blank" rel="noopener"><strong>Consumer Price Index (CPI)</strong></a> inflation to:<br />
<ul style="list-style-type: disc;">
<li>5.0% in <strong>Quarter 4</strong> of 2020-21.</li>
<li>5.2% in <strong>Quarter 1</strong> of 2021-22.</li>
<li>5.2% in <strong>Quarter 2</strong> of 2021-22.</li>
<li>4.4% in <strong>Quarter 3</strong> of 2021-22.</li>
<li>5.1% in <strong>Quarter 4</strong> of 2021-22.</li>
</ul>
</li>
</ul>
</li>
<li><strong>Accommodative Stance:</strong><br />
<ul style="list-style-type: circle;">
<li>The RBI decided to<strong> continue with the <a href="/daily-updates/daily-news-analysis/monetary-policy-rbi#:~:text=Accommodative%20Stance%3A,Covid%2D19%20on%20the%20economy." target="_blank" rel="noopener">accommodative stance</a></strong> as long as necessary to sustain growth on a durable basis and continue to mitigate the impact of <a href="/daily-updates/daily-news-analysis/impact-of-covid-19-outbreak" target="_blank" rel="noopener"><strong>Covid-19</strong></a> on the economy, while ensuring that <a href="/daily-updates/daily-news-analysis/inflation-data-august-2020#:~:text=Inflation%20measures%20the%20average%20price,a%20deceleration%20in%20economic%20growth." target="_blank" rel="noopener"><strong>inflation</strong></a> remains within the target going forward.<br />
<ul style="list-style-type: disc;">
<li>An <strong>accommodative stance</strong> means a <strong>central bank will cut rates to inject money</strong> into the financial system <strong>whenever needed.</strong></li>
</ul>
</li>
</ul>
</li>
<li><strong>Support to Financial Institutions:</strong><br />
<ul style="list-style-type: circle;">
<li>RBI would extend fresh support of <strong>Rs. 50,000 crore</strong> to the <strong>All India Financial Institutions</strong> for new lending in <a href="/current-affairs-news-analysis-editorials/news-analysis/03-02-2021" target="_blank" rel="noopener"><strong>Financial Year (FY)</strong></a> 2021-22.<br />
<ul style="list-style-type: disc;">
<li><a href="/important-institutions/drishti-specials-important-institutions-national-institutions/national-bank-for-agriculture-and-rural-development-nabard" target="_blank" rel="noopener"><strong>National Bank for Agriculture and Rural Development (NABARD)</strong> </a>will be provided a<strong> Special Liquidity Facility (SLF)</strong> of <strong>Rs. 25,000</strong> crore for one year to support agriculture and allied activities, the rural non-farm sector and <a href="/daily-updates/daily-news-analysis/4-tier-structure-for-regulation-of-nbfcs#:~:text=A%20Non%2DBanking%20Financial%20Company,leasing%2C%20hire%2Dpurchase%2C%20insurance" target="_blank" rel="noopener"><strong>Non-Banking Financial Companies (NBFCs)</strong></a> - <a href="/daily-updates/daily-news-analysis/guidelines-for-licencing-of-small-finance-banks" target="_blank" rel="noopener"><strong>Micro-Finance Institutions (MFIs).</strong></a></li>
<li>An SLF of <strong>Rs. 10,000 crore</strong> will be extended to the <a href="/current-affairs-news-analysis-editorials/news-analysis/18-04-2020" target="_blank" rel="noopener"><strong>National Housing Bank</strong></a> for one year to support the housing sector.</li>
<li><a href="/daily-updates/daily-news-analysis/parliamentary-committee-report-on-startups" target="_blank" rel="noopener"><strong>Small Industries Development Bank of India (SIDBI)</strong></a> will be provided Rs.15,000 crore under this facility for up to one year for funding of <a href="/daily-updates/daily-news-editorials/going-beyond-the-credit-requirements-of-msmes" target="_blank" rel="noopener"><strong>Micro, Small and Medium enterprises (MSMEs)</strong></a>.</li>
</ul>
</li>
<li>All three facilities will be available at the <strong>prevailing policy repo rate.</strong></li>
</ul>
</li>
<li><strong>Review Committee for ARC&rsquo;s:</strong><br />
<ul style="list-style-type: circle;">
<li>Signalling the importance of <a href="/daily-updates/daily-news-analysis/asset-reconstruction-company#:~:text=Key%20Points,clean%20up%20their%20balance%20sheets." target="_blank" rel="noopener"><strong>Asset Reconstruction Companies (ARCs)</strong> </a>to deal with bad loans, the RBI would <strong>constitute a committee to undertake a comprehensive review</strong> of the working of ARCs in the financial sector ecosystem.</li>
<li>The committee will <strong>recommend suitable measures</strong> for enabling such entities to meet the growing requirements of the financial sector.</li>
</ul>
</li>
<li><strong>Extension of Priority Sector Lending:</strong><br />
<ul style="list-style-type: circle;">
<li>A six-month extension to September 30,2021 for <a href="/daily-updates/daily-news-analysis/revised-priority-sector-lending-guidelines" target="_blank" rel="noopener"><strong>Priority Sector Lending (PSL)</strong></a> classification for lending by banks to NBFCs for<strong> &lsquo;on-lending&rsquo;</strong> to sectors that contribute significantly to the economy in terms of export and employment &mdash; has been approved.<br />
<ul style="list-style-type: disc;">
<li><strong>On-lending</strong> means to lend (borrowed money) to a <strong>third party.</strong></li>
</ul>
</li>
<li>This would<strong> provide an impetus to NBFCs</strong> providing credit at the bottom of the pyramid.</li>
</ul>
</li>
<li><strong>Government Securities Acquisition Programme (G-SAP) 1.0:</strong><br />
<ul style="list-style-type: circle;">
<li><strong>About:</strong><br />
<ul style="list-style-type: disc;">
<li>The RBI, for the year 2021-22, has decided to put in place a secondary market <strong><a href="/daily-updates/daily-news-analysis/direct-access-to-g-sec-market-for-retail-investors-rbi#:~:text=A%20G%2DSec%20is%20a,acknowledges%20the%20Government's%20debt%20obligation.&amp;text=Gilt%2Dedged%20securities%20are%20high,a%20means%20of%20borrowing%20funds." target="_blank" rel="noopener">Government Security (G-sec)</a> Acquisition Programme or G-SAP 1.0.</strong><br />
<ul style="list-style-type: disc;">
<li>It is part of RBIs <a href="/daily-updates/daily-news-analysis/open-market-operations" target="_blank" rel="noopener"><strong>Open Market Operations.</strong></a></li>
</ul>
</li>
<li>Under the programme, the <strong>RBI will commit upfront to a specific amount of Open Market Purchases of government securities.</strong></li>
<li>The<strong> first purchase</strong> of government securities for an aggregate amount of <strong>Rs. 25,000 crore</strong> under G-SAP 1.0 will be conducted on <strong>15<sup>th</sup> April, 2021.</strong></li>
</ul>
</li>
<li><strong>Objective:</strong><br />
<ul style="list-style-type: disc;">
<li>To<strong> avoid volatility in the G-sec market</strong> in view of its central role in the pricing of other financial market instruments across the term structure and issuers, both in the public and private sectors</li>
</ul>
</li>
<li><strong>Significance:</strong><br />
<ul style="list-style-type: disc;">
<li>It will <strong>provide certainty to the bond market participants</strong> with regard to RBI&rsquo;s commitment of support to the bond market in FY22.</li>
<li>The announcement of this structured programme will<strong> help reduce the difference between the repo rate and the 10-year government bond yield.</strong> That, in turn, will help to<strong> reduce the aggregate cost of borrowing</strong> for the Centre and states in FY 2021-22.</li>
<li>It will enable a stable and <strong>orderly evolution of the yield curve amidst comfortable liquidity conditions.</strong><br />
<ul style="list-style-type: disc;">
<li>A yield curve is a line that <strong>plots yields (interest rates) of bonds</strong> having equal credit quality but differing maturity dates.</li>
<li>The<strong> slope of the yield curve gives an idea of future interest rate</strong> changes and economic activity.</li>
</ul>
</li>
</ul>
</li>
</ul>
</li>
</ul>
<div class="border-bg">
<p><strong>Key Terms</strong></p>
<ul style="list-style-type: square;">
<li><strong>Repo and Reverse Repo Rate:</strong><br />
<ul style="list-style-type: circle;">
<li>Repo rate is the <strong>rate at which the central bank of a country (Reserve Bank of India in case of India) lends money to commercial banks in the event of any shortfall of funds.</strong> Here, the central bank purchases the security.</li>
<li>Reverse repo rate is <strong>the rate at which the RBI borrows money from commercial banks within the country.</strong></li>
</ul>
</li>
<li><strong>Bank Rate:</strong><br />
<ul style="list-style-type: circle;">
<li>It is the<strong> rate charged by the RBI for lending funds to commercial banks.</strong></li>
</ul>
</li>
<li><strong>Marginal Standing Facility (MSF):</strong><br />
<ul style="list-style-type: circle;">
<li>MSF is a <strong>window for scheduled banks to borrow overnight from the RBI</strong> in an emergency situation when interbank liquidity dries up completely.</li>
<li>Under interbank lending, banks lend funds to one another for a specified term.</li>
</ul>
</li>
<li><strong>Open Market Operations:</strong><br />
<ul style="list-style-type: circle;">
<li>These are <strong>market operations conducted by RBI by way of sale/purchase of government securities to/from the market with an objective to adjust the rupee liquidity conditions</strong> in the market on a durable basis.</li>
<li><strong>If there is excess liquidity,</strong> RBI resorts to sale of securities and sucks out the rupee liquidity.</li>
<li>Similarly,<strong> when the liquidity conditions are tight,</strong> RBI buys securities from the market, thereby releasing liquidity into the market.</li>
<li>It is one of the <a href="/daily-updates/daily-news-analysis/rbi-keeps-policy-rates-unchanged" target="_blank" rel="noopener"><strong>quantitative (to regulate or control the total volume of money) monetary policy tools</strong></a> which is employed by the central bank of a country to control the money supply in the economy.</li>
</ul>
</li>
<li><strong>Government Security:</strong><br />
<ul style="list-style-type: circle;">
<li>A G-Sec is a<strong> tradable instrument issued by the Central Government</strong> or the State Governments.</li>
<li>It <strong>acknowledges the Government&rsquo;s debt obligation.</strong> Such securities are <strong>short term</strong> (usually called treasury bills, with original maturities of less than one year- presently issued in three tenors, namely, 91 day, 182 day and 364 day) or long term (usually called Government bonds or dated securities with original maturity of one year or more).</li>
</ul>
</li>
<li><strong>Inflation:</strong><br />
<ul style="list-style-type: circle;">
<li>Inflation<strong> refers to the rise in the prices of most goods and services of daily or common use,</strong> such as food, clothing, housing, recreation, transport, consumer staples, etc.</li>
<li>Inflation <strong>measures the average price change in a basket of commodities and services over time.</strong></li>
<li>Inflation is <strong>indicative of the decrease in the purchasing power</strong> of a unit of a country&rsquo;s currency. This could ultimately lead to a deceleration in economic growth.</li>
</ul>
</li>
<li><strong>Consumer Price Index:</strong><br />
<ul style="list-style-type: circle;">
<li>It <strong>measures price changes from the perspective of a retail buyer.</strong> It is released by the <a href="/daily-updates/daily-news-analysis/restructuring-of-indian-statistical-system" target="_blank" rel="noopener"><strong>National Statistical Office (NSO).</strong></a></li>
<li>The CPI <strong>calculates the difference in the price of commodities and services</strong> such as food, medical care, education, electronics etc, which Indian consumers buy for use.</li>
</ul>
</li>
</ul>
</div>
<p><a href="https://indianexpress.com/article/explained/explained-why-rbis-monetary-policy-committee-kept-rates-unchanged-7262345/" target="_blank" rel="noopener"><strong>Source:IE</strong></a></p>',
		'posturl' => 'monetary-policy-report-rbi-1',
		'publishon' => object(Cake\I18n\FrozenTime) {},
		'tag' => 'Growth & Development',
		'[new]' => false,
		'[accessible]' => [
			[maximum depth reached]
		],
		'[dirty]' => [[maximum depth reached]],
		'[original]' => [[maximum depth reached]],
		'[virtual]' => [[maximum depth reached]],
		'[errors]' => [[maximum depth reached]],
		'[invalid]' => [[maximum depth reached]],
		'[repository]' => 'articles'
	
	},
	(int) 13 => object(Cake\ORM\Entity) {

		'article_id' => (int) 8097,
		'category_id' => (int) 21,
		'title' => 'World Economic Outlook: IMF',
		'description' => '<h3>Why in News</h3>
<p>The latest edition of the <strong>International Monetary Fund&rsquo;s (IMF) World Economic Outlook</strong> has raised its <a href="/to-the-points/paper3/government-budgeting" target="_blank" rel="noopener"><strong>Financial Year (FY)</strong> </a>2021 growth forecast for India to 12.5% from <strong><a href="/daily-updates/daily-news-analysis/world-economic-outlook-imf-1" target="_blank" rel="noopener">11.5% estimated earlier in January 2021</a>.</strong></p>
<h3>Key Points</h3>
<ul style="list-style-type: square;">
<li><strong>Indian Economy:</strong><br />
<ul style="list-style-type: circle;">
<li>Indian economy is expected to grow by <strong>12.5% in 2021 and 6.9% in 2022.</strong><br />
<ul style="list-style-type: disc;">
<li>In <strong>2020</strong>, India&rsquo;s economy witnessed <strong>an estimated contraction of 8%.</strong></li>
</ul>
</li>
<li>Growth rate for India in 2021 is <strong>stronger than that of China.</strong><br />
<ul style="list-style-type: disc;">
<li>China was the <strong>only major economy to have a positive growth rate of 2.3% in 2020</strong>, and is expected to grow by 8.6% in 2021 and 5.6% in 2022.</li>
</ul>
</li>
</ul>
</li>
<li><strong>Global Economy:</strong><br />
<ul style="list-style-type: circle;">
<li>The IMF predicted stronger recovery in 2021 and 2022 with growth projected to be <strong>6% in 2021 and 4.4% in 2022.</strong><br />
<ul style="list-style-type: disc;">
<li>In <strong>2020</strong>, the global economy <strong>contracted by 3.3%</strong></li>
</ul>
</li>
<li>The contraction for 2020 is 1.1% points smaller than previous projection, <strong>reflecting:</strong><br />
<ul style="list-style-type: disc;">
<li><strong>Higher-than-expected growth outturns in the second half of the year</strong> for most regions after <strong>lockdowns</strong> were eased and as economies adapted to new ways of working.</li>
<li><strong>Additional fiscal support in a few large economies</strong> and the anticipated vaccine-powered recovery in the second half of the year.</li>
</ul>
</li>
</ul>
</li>
<li><strong>Suggestions:</strong><br />
<ul style="list-style-type: circle;">
<li><strong>Health Care:</strong><br />
<ul style="list-style-type: disc;">
<li>The emphasis should be on escaping the health crisis by <strong>prioritising health care spending, on vaccinations, treatments, and health care infrastructure.</strong> Fiscal support should be well targeted to affected households and firms.</li>
</ul>
</li>
<li><strong>Accommodative Monetary Policy:</strong><br />
<ul style="list-style-type: disc;">
<li><a href="/daily-updates/daily-news-analysis/monetary-policy-report-rbi" target="_blank" rel="noopener"><strong>Monetary policy</strong></a> should remain <a href="/daily-updates/daily-news-analysis/rbi-monetary-policy-2021#:~:text=Accommodative%20Stance%3A,within%20the%20target%20going%20forward." target="_blank" rel="noopener"><strong>accommodative</strong></a> (where <a href="/daily-updates/daily-news-analysis/inflation-data-august-2020" target="_blank" rel="noopener"><strong>inflation</strong></a> is well behaved), while proactively addressing financial stability risks using macroprudential tools.</li>
</ul>
</li>
<li><strong>Tailored Approach:</strong><br />
<ul style="list-style-type: disc;">
<li><strong>Policymakers will need to continue supporting their economies</strong> while dealing with more limited policy space and higher debt levels than prior to the pandemic.</li>
<li>This requires better <strong>targeted measures to leave space for prolonged support if needed. With multi-speed recoveries, a tailored approach is necessary, with policies well-calibrated to the stage of the<a href="/daily-updates/daily-news-analysis/covid-19-now-pandemic-who" target="_blank" rel="noopener"> pandemic</a></strong>, the strength of the economic recovery, and the structural characteristics of individual countries.</li>
</ul>
</li>
<li><strong>Priorities:</strong><br />
<ul style="list-style-type: disc;">
<li>The priorities should include <strong>green infrastructure investment</strong> to help mitigate <a href="/daily-updates/daily-news-editorials/climate-change-and-development-in-india" target="_blank" rel="noopener"><strong>climate change</strong></a>, digital infrastructure investment to boost productive capacity and strengthening social assistance to arrest <strong>rising inequality.</strong></li>
</ul>
</li>
</ul>
</li>
</ul>
<div class="border-bg">
<p><strong>International Monetary Fund</strong></p>
<ul style="list-style-type: square;">
<li>The IMF was set up along with the <a href="/important-institutions/drishti-specials-important-institutions-international-institution/world-bank-group" target="_blank" rel="noopener"><strong>World Bank</strong></a> after the <a href="/to-the-points/paper1/world-war-ii" target="_blank" rel="noopener"><strong>Second World War</strong> </a>to assist in the<strong> reconstruction of war-ravaged countries.</strong><br />
<ul style="list-style-type: circle;">
<li>The two organisations were agreed to be set up at a conference in Bretton Woods in the US. Hence, they are known as the<strong> Bretton Woods twins.</strong></li>
</ul>
</li>
<li>Created in 1945, the IMF is governed by and accountable to the 189 countries that make up its near-global membership.<strong> India joined on 27<sup>th</sup> December, 1945.</strong></li>
<li>The IMF's primary <strong>purpose is to ensure the stability of the international monetary system</strong> &mdash; the system of exchange rates and international payments that enables countries (and their citizens) to transact with each other.<br />
<ul style="list-style-type: circle;">
<li>The Fund's mandate was updated in 2012 to include all macroeconomic and financial sector issues that bear on global stability.</li>
</ul>
</li>
<li><strong>Reports by IMF:</strong><br />
<ul style="list-style-type: circle;">
<li><a href="/daily-updates/daily-news-analysis/important-facts-for-prelims-11th-april-2019" target="_blank" rel="noopener"><strong>Global Financial Stability Report</strong></a></li>
<li>World Economic Outlook</li>
</ul>
</li>
</ul>
<p><strong>World Economic Outlook</strong></p>
<ul style="list-style-type: square;">
<li>It is a survey by the IMF that is usually <strong>published twice a year</strong> in the months of April and October.</li>
<li>It <strong>analyzes and predicts global economic developments</strong> during the near and medium term.</li>
<li>In response to the growing demand for more frequent forecast updates, the WEO Update is published in January and July between the two main WEO publications released usually in April and October.</li>
</ul>
</div>
<p><a href="https://indianexpress.com/article/business/economy/imf-projects-indias-growth-rate-to-jump-to-impressive-12-5-per-cent-in-2021/" target="_blank" rel="noopener"><strong>Source:IE</strong></a></p>',
		'posturl' => 'world-economic-outlook-imf-2',
		'publishon' => object(Cake\I18n\FrozenTime) {},
		'tag' => 'Growth & Development',
		'[new]' => false,
		'[accessible]' => [
			[maximum depth reached]
		],
		'[dirty]' => [[maximum depth reached]],
		'[original]' => [[maximum depth reached]],
		'[virtual]' => [[maximum depth reached]],
		'[errors]' => [[maximum depth reached]],
		'[invalid]' => [[maximum depth reached]],
		'[repository]' => 'articles'
	
	},
	(int) 14 => object(Cake\ORM\Entity) {

		'article_id' => (int) 8086,
		'category_id' => (int) 21,
		'title' => 'National Maritime Day 2021',
		'description' => '<h3>Why in News</h3>
<p>Recently, the Ministry of Ports, Shipping &amp; Waterways celebrated the <strong>58<sup>th</sup> National Maritime Day (5<sup>th</sup> April).</strong></p>
<ul style="list-style-type: square;">
<li><a href="/daily-updates/daily-news-analysis/maritime-vision-2030" target="_blank" rel="noopener"><strong>Maritime India Vision-2030</strong></a>, was also discussed at the occasion.</li>
</ul>
<h3>Key Points</h3>
<ul style="list-style-type: square;">
<li><strong>About:</strong>
<ul style="list-style-type: circle;">
<li>National Maritime Day is celebrated <strong>every year on</strong> <strong>5<sup>th&nbsp;</sup>April</strong> to commemorate the maiden voyage of the<strong> first Indian flag merchant vessel 'S.S LOYALTY'</strong> from Mumbai to London, on <strong>April 5<sup>th</sup>, 1919.</strong></li>
</ul>
</li>
<li><strong>2021 Theme:</strong>
<ul style="list-style-type: circle;">
<li><strong>&lsquo;Sustainable Shipping beyond Covid-19&rsquo;.</strong></li>
</ul>
</li>
<li><strong>Significance:</strong>
<ul style="list-style-type: circle;">
<li>It is celebrated <strong>to encourage the merchant shipping industry of India.</strong> Shipping contributes a lot to the country&rsquo;s economy.</li>
<li>At present, <strong>90% of India&rsquo;s international trade in terms of volume </strong>and<strong> 77% in terms of value is moved by sea.</strong></li>
</ul>
</li>
<li><strong>Other Initiatives:</strong>
<ul style="list-style-type: circle;">
<li><strong>Sagarmala Initiative:</strong>
<ul style="list-style-type: disc;">
<li>The <a href="/daily-updates/daily-news-analysis/sagarmala-seaplane-services" target="_blank" rel="noopener"><strong>Sagarmala Programme</strong></a> was approved by the Union Cabinet in 2015 which <strong>aims at holistic port infrastructure development along the 7,516-km long coastline </strong>through <strong>modernisation, mechanisation and computerisation.</strong></li>
</ul>
</li>
<li><strong>Project Unnati:</strong>
<ul style="list-style-type: disc;">
<li>The shipping ministry launched Project Unnati in 2014 under which efficiency of equipment was studied and every activity was scrutinised to identify excesses/mistakes.</li>
</ul>
</li>
<li><strong>Blue Economy Policy:</strong>
<ul style="list-style-type: disc;">
<li>The policy document highlights the <a href="/daily-updates/daily-news-analysis/draft-blue-economy-policy" target="_blank" rel="noopener"><strong>blue economy</strong></a> as one of the ten core dimensions for national growth and It <strong>emphasizes policies across several key sectors to achieve holistic growth of India&rsquo;s economy.</strong></li>
</ul>
</li>
<li><strong>Joined International Maritime Organization:</strong>
<ul style="list-style-type: disc;">
<li>India is also a member of the <a href="/daily-updates/daily-news-editorials/international-maritime-organization-and-india" target="_blank" rel="noopener"><strong>International Maritime Organization (IMO).</strong></a></li>
<li>IMO is a specialized agency of the <a href="/important-institutions/drishti-specials-important-institutions-international-institution/united-nations-1" target="_blank" rel="noopener"><strong>United Nations (UN).</strong></a> It is a global standard-setting authority with responsibility to improve the safety and security of international shipping and prevention of marine and atmospheric pollution by ships.</li>
</ul>
</li>
<li><strong>National Waterways:</strong>
<ul style="list-style-type: disc;">
<li>As per the <a href="/daily-updates/daily-news-analysis/use-of-waterways-for-reducing-transportation-cost#:~:text=It%20came%20into%20existence%20on,from%20the%20Ministry%20of%20Shipping." target="_blank" rel="noopener"><strong>National Waterways Act 2016,</strong></a> 111 waterways have been declared as National Waterways (NWs).</li>
</ul>
</li>
<li><strong>The Sagar-Manthan:</strong>
<ul style="list-style-type: disc;">
<li>Mercantile Marine Domain Awareness Centre has been launched.</li>
<li>It is an information system <strong>for enhancing maritime safety, search and rescue capabilities, security and marine environment protection.</strong></li>
</ul>
</li>
<li><strong>Ship Repair Clusters:</strong>
<ul style="list-style-type: disc;">
<li>They will be developed along both coasts by <strong>2022.</strong></li>
</ul>
</li>
<li><strong>Ship Recycling:</strong>
<ul style="list-style-type: disc;">
<li>Domestic ship recycling industry will also be promoted to create <a href="/daily-updates/daily-news-analysis/waste-to-energy-plants" target="_blank" rel="noopener"><strong>'Wealth from Waste'.</strong></a>
<ul style="list-style-type: disc;">
<li>India has enacted<strong> Recycling of Ships Act, 2019</strong> and agreed to the <a href="/daily-updates/daily-news-analysis/hong-kong-convention-for-ship-recycling" target="_blank" rel="noopener"><strong>Hong Kong Convention for Ship Recycling.</strong></a></li>
</ul>
</li>
</ul>
</li>
</ul>
</li>
</ul>
<h3>Maritime India Vision 2030</h3>
<ul style="list-style-type: square;">
<li><strong>About:</strong>
<ul style="list-style-type: circle;">
<li>It is a<strong> ten-year blueprint for the maritime sector</strong> which was released by the Prime Minister of India at the <strong><a href="/daily-updates/daily-news-analysis/maritime-india-summit-2021" target="_blank" rel="noopener">Maritime India Summit</a> 2021.</strong></li>
<li>It will supersede the <strong>Sagarmala initiative</strong> and aims to boost <a href="/daily-updates/daily-news-analysis/use-of-waterways-for-reducing-transportation-cost#:~:text=It%20came%20into%20existence%20on,from%20the%20Ministry%20of%20Shipping." target="_blank" rel="noopener"><strong>waterways</strong></a>, give a fillip to the shipbuilding industry and encourage cruise tourism in India.</li>
</ul>
</li>
<li><strong>Policy Initiatives and Development Projects:</strong>
<ul style="list-style-type: circle;">
<li><strong>Maritime Development Fund:</strong>
<ul style="list-style-type: disc;">
<li>A <strong>Rs. 25,000-crore fund,</strong> which will provide low cost, long-tenure financing to the sector with the Centre contributing Rs. 2,500 crore over seven years.</li>
</ul>
</li>
<li><strong>Port Regulatory Authority:</strong>
<ul style="list-style-type: disc;">
<li>A<strong> pan-India port authority</strong> will be set up under the new Indian Ports Act (to replace the old Indian Ports Act 1908) for enabling oversight across major and non-major ports, enhance institutional coverage for ports and provide for structured growth of the ports sector to boost investor confidence.</li>
</ul>
</li>
<li><strong>Eastern Waterways Connectivity Transport Grid Project:</strong>
<ul style="list-style-type: disc;">
<li>It aims to <strong>develop regional connectivity</strong> with Bangladesh, Nepal, Bhutan and Myanmar.</li>
</ul>
</li>
<li><strong>Riverine Development Fund:</strong>
<ul style="list-style-type: disc;">
<li>Calls for extending low cost, long-term financing for inland vessels with the support of a<strong> Riverine Development Fund (RDF)</strong> and for extending the coverage of the <strong>tonnage tax scheme</strong> (applicable to ocean-going ships and dredgers) to inland vessels to enhance the availability of such vessels.</li>
</ul>
</li>
<li><strong>Rationalisation of Port Charges:</strong>
<ul style="list-style-type: disc;">
<li>It <strong>will make them more competitive,</strong> besides doing away with all hidden charges levied by ship liners to bring in more transparency.</li>
</ul>
</li>
<li><strong>Promotion of Water Transport:</strong>
<ul style="list-style-type: disc;">
<li>For decongestion of urban areas, and <strong>developing waterways as an alternative means of urban transport.</strong></li>
</ul>
</li>
</ul>
</li>
</ul>
<p><a href="https://pib.gov.in/PressReleaseIframePage.aspx?PRID=1709706" target="_blank" rel="noopener"><strong>Source:PIB</strong></a></p>',
		'posturl' => 'national-maritime-day-2021',
		'publishon' => object(Cake\I18n\FrozenTime) {},
		'tag' => 'Growth & Development',
		'[new]' => false,
		'[accessible]' => [
			[maximum depth reached]
		],
		'[dirty]' => [[maximum depth reached]],
		'[original]' => [[maximum depth reached]],
		'[virtual]' => [[maximum depth reached]],
		'[errors]' => [[maximum depth reached]],
		'[invalid]' => [[maximum depth reached]],
		'[repository]' => 'articles'
	
	},
	(int) 15 => object(Cake\ORM\Entity) {

		'article_id' => (int) 8074,
		'category_id' => (int) 21,
		'title' => 'PLI Scheme for Food Processing Industry',
		'description' => '<h3>Why in News</h3>
<p>Recently, the Union Cabinet has approved the <a href="/daily-updates/daily-news-analysis/proposal-to-hike-monthly-pensions" target="_blank" rel="noopener"><strong>Central Sector Scheme</strong></a> - <strong>"Production Linked Incentive Scheme for Food Processing Industry (PLISFPI)"</strong> entailing an <strong>outlay of Rs. 10,900 crore.</strong></p>
<h3>Key Points</h3>
<ul style="list-style-type: square;">
<li><strong>PLI Scheme:</strong><br />
<ul style="list-style-type: circle;">
<li>In order to boost domestic manufacturing and cut down on import bills, the <strong>central government in March 2020 introduced a <a href="/daily-updates/daily-news-analysis/pli-scheme-for-ten-more-sectors" target="_blank" rel="noopener">PLI</a> scheme</strong> that aims to give companies incentives on incremental sales from products manufactured in domestic units.</li>
<li>Apart from inviting foreign companies to set shop in India, the scheme also aims to encourage local companies to set up or expand existing manufacturing units.</li>
<li>PLI Scheme<strong> has also been approved for sectors</strong> such as automobiles, pharmaceuticals, IT hardware including laptops, mobile phones &amp; telecom equipment, white goods, chemical cells and textiles, etc.</li>
</ul>
</li>
<li><strong>Objectives of the PLISFPI:</strong><br />
<ul style="list-style-type: circle;">
<li>To support creation of<strong> global food manufacturing champions.</strong></li>
<li>To <strong>strengthen select Indian brands of food products</strong> for global visibility and wider acceptance in the international markets.</li>
<li>To increase <strong>employment opportunities of off-farm jobs.</strong></li>
<li>To ensure <strong>remunerative prices of farm produce</strong> and higher income to farmers.</li>
</ul>
</li>
<li><strong>Features of PLISFPI:</strong><br />
<ul style="list-style-type: circle;">
<li><strong>Coverage:</strong><br />
<ul style="list-style-type: disc;">
<li>It will <strong>support food manufacturing entities with stipulated minimum Sales and willing to make minimum stipulated investment</strong> for expansion of processing capacity and Branding abroad.</li>
<li>The<strong> first component</strong> relates to<strong> incentivising manufacturing of four major food product segments</strong> viz. Ready to Cook/ Ready to Eat (RTC/ RTE) foods, Processed Fruits &amp; Vegetables, Marine Products, Mozzarella Cheese.<br />
<ul style="list-style-type: disc;">
<li>It also covers organic products, free-range eggs, poultry meat and egg products.</li>
</ul>
</li>
<li>The<strong> second component</strong> relates to<strong> support for branding and marketing abroad.</strong></li>
</ul>
</li>
<li><strong>Duration:</strong> Scheme will be implemented over <strong>a six year period from 2021-22 </strong>to<strong> 2026-27.</strong></li>
</ul>
</li>
<li><strong>Expected Benefits:</strong><br />
<ul style="list-style-type: circle;">
<li><strong>Expansion of processing capacity</strong> to generate<strong> processed food output of Rs. 33,494 crore.</strong></li>
<li>Create employment for nearly <strong>2.5 lakh persons by the year 2026-27.</strong></li>
</ul>
</li>
<li><strong>Other Scheme Related to Food Processing Industry:</strong><br />
<ul style="list-style-type: circle;">
<li><a href="/daily-updates/daily-news-analysis/pradhan-mantri-kisan-sampada-yojana" target="_blank" rel="noopener"><strong>Pradhan Mantri Kisan Sampda Yojana (PMKSY)</strong></a></li>
</ul>
</li>
</ul>
<p><a href="https://pib.gov.in/PressReleasePage.aspx?PRID=1708692" target="_blank" rel="noopener"><strong>Source: PIB</strong></a></p>',
		'posturl' => 'pli-scheme-for-food-processing-industry',
		'publishon' => object(Cake\I18n\FrozenTime) {},
		'tag' => 'Growth & Development',
		'[new]' => false,
		'[accessible]' => [
			[maximum depth reached]
		],
		'[dirty]' => [[maximum depth reached]],
		'[original]' => [[maximum depth reached]],
		'[virtual]' => [[maximum depth reached]],
		'[errors]' => [[maximum depth reached]],
		'[invalid]' => [[maximum depth reached]],
		'[repository]' => 'articles'
	
	},
	(int) 16 => object(Cake\ORM\Entity) {

		'article_id' => (int) 8072,
		'category_id' => (int) 21,
		'title' => 'Oil Import Contracts',
		'description' => '<h3>Why in News</h3>
<p>Amid <strong>tensions with Saudi Arabia over oil production cuts,</strong> the <strong>Indian government has asked its state refiners (IOC, BPCL and HPCL)</strong> to look for<strong> oil supplies from outside the <a href="/daily-updates/daily-news-editorials/india-gulf-countries" target="_blank" rel="noopener">Middle East region</a></strong> and use <strong>collective bargaining power</strong> to get favourable terms.</p>
<h3>Key Points</h3>
<ul style="list-style-type: square;">
<li><strong>Tension with Saudi Arabia:</strong><br />
<ul style="list-style-type: circle;">
<li>When oil prices started to rise in early 2021, <strong>India wanted Saudi Arabia to relax output controls</strong> but the Kingdom ignored its calls.</li>
<li>This has led to the Indian government pressing for diversification of the supply base.</li>
<li>Saudi Arabia and other <a href="/daily-updates/daily-news-analysis/opec" target="_blank" rel="noopener"><strong>OPEC (Organization of the Petroleum Exporting Countries)</strong></a> producers have been the mainstay suppliers of crude oil for India. But their terms have often been loaded against the buyers.<br />
<ul style="list-style-type: disc;">
<li>OPEC is a <strong>permanent intergovernmental organization of 13 oil-exporting developing nations</strong> that coordinates and unifies the petroleum policies of its Member countries.</li>
<li><strong>Member Countries:</strong> Iran, Iraq, Kuwait, United Arab Emirates (UAE), Saudi Arabia, Algeria, Libya, Nigeria, Gabon, Equatorial Guinea, Republic of Congo, Angola, and Venezuela.</li>
</ul>
</li>
</ul>
</li>
<li><strong>Issues With the Contracts with OPEC Producers:</strong><br />
<ul style="list-style-type: circle;">
<li>Indian firms buy two-third of their purchases on term or fixed annual contracts.<br />
<ul style="list-style-type: disc;">
<li>These term contracts provide assured supplies of the contracted quantity but the <strong>pricing and other terms favour only the supplier.</strong></li>
</ul>
</li>
<li>The buyer has to indicate at least six weeks in advance of their intention to lift quantity out of the annual term contract in any month and has to pay an average official price announced by the producer.<br />
<ul style="list-style-type: disc;">
<li>While buyers have an obligation to lift all of the contracted quantity, Saudi Arabia and other producers have the option to reduce supplies in case OPEC decides to keep production artificially lower to boost prices.</li>
</ul>
</li>
</ul>
</li>
<li><strong>Options for India:</strong><br />
<ul style="list-style-type: circle;">
<li>India needs<strong> pricing flexibility</strong> as well as the<strong> certainty of supply</strong> even during times when production falls due to any reason.<br />
<ul style="list-style-type: disc;">
<li>Besides, choice of time of supply and flexibility on quantity (ability to reduce or increase) is what India should be looking at.</li>
</ul>
</li>
<li>Indian refiners can look to <strong>reduce the quantity they buy through term contracts</strong> and <strong>instead buy more from the spot or current market.</strong></li>
<li>Buying from the <strong>spot market</strong> would ensure that India can take advantage of any fall in prices on any day and book quantities.<br />
<ul style="list-style-type: disc;">
<li>It&rsquo;s like the stock market where shares can be brought on a day or time when the prices are low.</li>
</ul>
</li>
<li><strong>State-owned refineries have also been asked to coordinate</strong> buying and also explore joint strategy with <strong>private refiners</strong> such as Reliance Industries and Nayara Energy.</li>
</ul>
</li>
</ul>
<div class="border-bg">
<p><strong>India and Oil Import</strong></p>
<ul style="list-style-type: square;">
<li>India is the <strong>world&rsquo;s third-largest consumer of oil.</strong></li>
<li>India imports <strong>85% of its total oil needs</strong> and is often <strong>vulnerable to global supply and price shocks.</strong></li>
<li>The <strong>Middle East accounts for 60% of all oil bought</strong> by India while Latin America and Africa are the other big supplier blocks.<br />
<ul style="list-style-type: circle;">
<li>In recent months, India has bought more<strong> oil from the USA</strong> and from newer sources such as <strong>Guyana,</strong> which has a large Indian diaspora.</li>
<li>However, due to its geographical proximity, the Middle East can supply cargoes in less time and at low freight rates.</li>
</ul>
</li>
</ul>
</div>
<p><a href="https://www.thehindu.com/business/india-asks-state-refiners-to-review-oil-import-contracts-with-saudi/article34223463.ece#:~:text=Amid%20tensions%20with%20Saudi%20Arabia,terms%2C%20a%20top%20official%20said." target="_blank" rel="noopener"><strong>Source:TH</strong></a></p>',
		'posturl' => 'oil-import-contracts',
		'publishon' => object(Cake\I18n\FrozenTime) {},
		'tag' => 'Growth & Development',
		'[new]' => false,
		'[accessible]' => [
			[maximum depth reached]
		],
		'[dirty]' => [[maximum depth reached]],
		'[original]' => [[maximum depth reached]],
		'[virtual]' => [[maximum depth reached]],
		'[errors]' => [[maximum depth reached]],
		'[invalid]' => [[maximum depth reached]],
		'[repository]' => 'articles'
	
	},
	(int) 17 => object(Cake\ORM\Entity) {

		'article_id' => (int) 8065,
		'category_id' => (int) 21,
		'title' => 'India’s Merchandise Trade Deficit',
		'description' => '<h3>Why in News</h3>
<p>Preliminary data released by the government showed that India's trade deficit in goods widened to USD 14.11 billion in March 2021 from USD 9.98 billion during March 2020.</p>
<h3>Key Points</h3>
<ul style="list-style-type: square;">
<li><strong>Other Observations:</strong><br />
<ul style="list-style-type: circle;">
<li><strong>Merchandise Exports:</strong> India&rsquo;s <strong>merchandise exports</strong> in March 2021 were <strong>USD 34.0 billion as compared to USD 21.49 billion in March 2020,</strong> an increase of 58.23%.<br />
<ul style="list-style-type: disc;">
<li>For the first time ever in a month, Indian exports crossed USD 34 billion in March 2021.</li>
</ul>
</li>
<li><strong>Merchandise Imports:</strong> India&rsquo;s merchandise imports were USD 48.12 billion as compared to USD 31.47 billion in March 2020, an increase of 52.89%. <br />
<ul style="list-style-type: disc;">
<li>India is thus a <strong>net importer in March 2021,</strong> with a trade deficit of USD 14.11 billion.</li>
</ul>
</li>
</ul>
</li>
<li><strong>Reasons for Increased Imports:</strong><br />
<ul style="list-style-type: circle;">
<li><strong>Relaxation in lockdown policy</strong> and <strong>start of economic activities</strong> are the main reasons for increase in demand for the goods and the import.</li>
<li>Also the rise in<strong> global trade</strong> has made the global supply chain active and the commerce is taking place.</li>
<li><strong>Oil import</strong> has increased due to opening up of the<strong> transportation sector.</strong></li>
</ul>
</li>
<li><strong>Trade Deficit:</strong> A trade deficit is an amount by which the cost of a country's imports exceeds its exports.<br />
<ul style="list-style-type: circle;">
<li>The<strong> trade deficit in goods</strong> shows a <strong>rise of demand in the economy.</strong></li>
<li>It is a part of the <a href="/daily-updates/daily-news-analysis/current-account-deficit" target="_blank" rel="noopener"><strong>Current Account Deficit.</strong></a></li>
</ul>
</li>
<li><strong>Current Account Deficit:</strong><br />
<ul style="list-style-type: circle;">
<li>The <strong>current account</strong> records<strong> exports and imports in goods and services and transfer payments.</strong> It represents a country&rsquo;s transactions with the rest of the world and, like the capital account, is a component of a country&rsquo;s <a href="/daily-updates/daily-news-analysis/strong-balance-of-payments" target="_blank" rel="noopener"><strong>Balance of Payments (BOP).</strong></a></li>
<li>There is a deficit in Current Account if the <strong>value of the goods and services imported exceeds the value of those exported.</strong></li>
<li>Major components are:<br />
<ul style="list-style-type: disc;">
<li><strong>Goods,</strong></li>
<li><strong>Services,</strong> and</li>
<li><strong>Net earnings on overseas investments (such as interests and dividend)</strong> and <strong>net transfer of payments</strong> over a period of time, such as <strong>remittances.</strong></li>
</ul>
</li>
<li>It is <strong>measured as a percentage of <a href="/daily-updates/daily-news-analysis/gdp-decreases-to-11-year-low" target="_blank" rel="noopener">Gross Domestic Product (GDP).</a></strong> The formulae for calculating Current Account Balance is:<br />
<ul style="list-style-type: disc;">
<li><strong>Current Account Balance = Trade gap + Net current transfers + Net income abroad.</strong></li>
<li>Trade gap = Exports &ndash; Imports</li>
</ul>
</li>
</ul>
</li>
</ul>
<div class="border-bg">
<p><strong>Balance of Payments</strong></p>
<ul style="list-style-type: square;">
<li><strong>Definition:</strong><br />
<ul style="list-style-type: circle;">
<li>Balance of Payment (BoP) of a country can be defined as a <strong>systematic statement of all economic transactions of a country</strong> with the rest of the world during a specific period usually one year.</li>
</ul>
</li>
<li><strong>Components of BoP:</strong><br />
<ul style="list-style-type: circle;">
<li>For preparing BoP accounts, economic transactions between a country and rest of the world are grouped under - <strong>Current account, Capital account and Financial Account and Errors and Omissions.</strong> <br />
<ul style="list-style-type: disc;">
<li>It also shows changes in<a href="/daily-updates/daily-news-analysis/forex-reserves-2" target="_blank" rel="noopener"><strong> Foreign Exchange Reserves.</strong></a></li>
</ul>
</li>
<li><strong>Current Account:</strong> It shows <strong>export and import of visibles</strong> (also called merchandise or goods - represent trade balance) and<strong> invisibles</strong> (also called non-merchandise).<br />
<ul style="list-style-type: disc;">
<li>Invisibles include services, transfers and income.</li>
</ul>
</li>
<li><strong>Capital Account and Financial Account:</strong> It shows a capital expenditure and income for a country.<br />
<ul style="list-style-type: disc;">
<li>It gives a summary of the <strong>net flow of both private and public investment</strong> into an economy.</li>
<li><a href="/daily-updates/daily-news-analysis/rbi-eases-external-commercial-borrowing-framework" target="_blank" rel="noopener"><strong>External Commercial Borrowing (ECB)</strong></a>, <a href="/daily-updates/daily-news-analysis/rise-in-foreign-direct-investment" target="_blank" rel="noopener"><strong>Foreign Direct Investment</strong></a>, <a href="/daily-updates/daily-news-analysis/increase-in-foreign-portfolio-investment" target="_blank" rel="noopener"><strong>Foreign Portfolio Investment</strong></a>, etc form a part of capital account.</li>
</ul>
</li>
<li><strong>Errors and Omissions:</strong> Sometimes the balance of payment does not balance. This imbalance is shown in the BoP as errors and omissions. It reflects the country&rsquo;s inability to record all international transactions accurately.</li>
<li>Overall the<strong> BoP account can be a surplus or a deficit.</strong> <br />
<ul style="list-style-type: disc;">
<li>If there is a deficit then it can be bridged by taking money from the <strong>Foreign Exchange (Forex) Account.</strong></li>
<li>If the reserves in the forex account are falling short then this scenario is referred to as BoP crisis.</li>
</ul>
</li>
</ul>
</li>
</ul>
</div>
<p><a href="https://www.thehindu.com/business/march-trade-deficit-widens-to-1411-billion/article34218180.ece#:~:text=India's%20trade%20deficit%20in%20goods,%2448.12%20billion%2C%20the%20data%20showed." target="_blank" rel="noopener"><strong>Source:TH</strong></a></p>',
		'posturl' => 'india-s-merchandise-trade-deficit',
		'publishon' => object(Cake\I18n\FrozenTime) {},
		'tag' => 'Growth & Development',
		'[new]' => false,
		'[accessible]' => [
			[maximum depth reached]
		],
		'[dirty]' => [[maximum depth reached]],
		'[original]' => [[maximum depth reached]],
		'[virtual]' => [[maximum depth reached]],
		'[errors]' => [[maximum depth reached]],
		'[invalid]' => [[maximum depth reached]],
		'[repository]' => 'articles'
	
	},
	(int) 18 => object(Cake\ORM\Entity) {

		'article_id' => (int) 8052,
		'category_id' => (int) 21,
		'title' => '4% Inflation Target Retained by Government',
		'description' => '<h3>Why in News</h3>
<p>The Government of India has decided to retain the<strong> inflation target of 4%,</strong> with a <strong>tolerance band of +/- 2 percentage points</strong> for the <a href="/daily-updates/daily-news-analysis/monetary-policy-report-rbi" target="_blank" rel="noopener"><strong>Monetary Policy Committee</strong></a> of the <a href="/important-institutions/drishti-specials-important-institutions-national-institutions/important-institutions-national-institution-reserve-bank-of-india" target="_blank" rel="noopener"><strong>Reserve Bank of India</strong> </a>(RBI) for the coming five years.</p>
<ul style="list-style-type: square;">
<li>Earlier, the RBI in its <a href="/daily-updates/daily-news-analysis/flexible-inflation-target" target="_blank" rel="noopener"><strong>Currency and Finance (RCF) report</strong> </a>for the year 2020-21 also recommended the inflation target to be kept same as 4% +/-2% for next 5 years.</li>
</ul>
<h3>Key Points</h3>
<ul style="list-style-type: square;">
<li><strong>About:</strong><br />
<ul style="list-style-type: circle;">
<li>To control the price rise, <strong>the Centre in 2016 gave a mandate to the RBI to keep the retail inflation at 4% with a margin of 2% on either side</strong> for a five-year period <strong>ending 31<sup>st</sup> March, 2021.</strong> <br />
<ul style="list-style-type: disc;">
<li>The<a href="/daily-updates/daily-news-analysis/inflation-data-august-2020" target="_blank" rel="noopener"><strong> Consumer Price Index (CPI)</strong></a> tracks the change in retail prices of goods and services which households purchase for their daily consumption.</li>
</ul>
</li>
<li>The<strong> inflation target for the period 1<sup>st</sup> April, 2021 to 31<sup>st</sup> March, 2026</strong> under the Reserve Bank of India Act 1934 has been <strong>kept at the same level</strong> as was for previous 5 years.</li>
</ul>
</li>
<li><strong>Background:<a href="http://www.drishtiias.com/images/uploads/1617273847_unnamed.png" target="_blank" rel="noopener"><img class="content-img" src="http://www.drishtiias.com/images/uploads/1617273847_unnamed.png" style="float: right;" caption="false" width="254" height="499" /></a></strong><br />
<ul style="list-style-type: circle;">
<li>The <strong>central bank and the government agreed in 2015 on a policy framework</strong> that stipulated a primary objective of ensuring price stability while keeping in mind the objective of growth.</li>
<li>The <strong>Flexible Inflation Target (FIT) was adopted in 2016.</strong> The <strong>Reserve Bank of India Act, 1934 was amended</strong> to provide a statutory basis for a FTI framework.</li>
<li>The amended Act <strong>provides for the inflation target to be set by the Government, in consultation with the RBI, once every five years.</strong></li>
</ul>
</li>
<li><strong>Inflation Targeting:</strong> <br />
<ul style="list-style-type: circle;">
<li>It is <strong>a central banking policy</strong> that revolves around adjusting monetary policy to achieve a specified annual rate of inflation.</li>
<li>Inflation targeting is known to <strong>bring more stability, predictability, and transparency</strong> in deciding monetary policy.</li>
<li><strong>Strict Inflation Targeting:</strong> <br />
<ul style="list-style-type: disc;">
<li>It is adopted when the central bank is only concerned about <strong>keeping inflation as close to a given inflation target as possible,</strong> and nothing else.</li>
</ul>
</li>
<li><strong>Flexible Inflation Targeting:</strong> <br />
<ul style="list-style-type: disc;">
<li>It is adopted<strong> when the central bank is to some extent also concerned about other things,</strong> for instance, the stability of interest rates, exchange rates, output and employment.</li>
</ul>
</li>
</ul>
</li>
</ul>
<div class="border-bg">
<p><strong>Monetary Policy</strong></p>
<ul style="list-style-type: square;">
<li>It is the macroeconomic policy laid down by the central bank. It <strong>involves management of money supply and interest rate and is the demand side economic policy</strong> used by the government of a country to achieve macroeconomic objectives like inflation, consumption, growth and liquidity.</li>
<li>In India, monetary policy of the Reserve Bank of India is<strong> aimed at managing the quantity of money in order to meet the requirements of different sectors</strong> of the economy and to increase the pace of economic growth.</li>
<li>The RBI implements the monetary policy through <strong>open market operations, bank rate policy, reserve system, credit control policy, moral persuasion</strong> and through many other instruments.</li>
</ul>
<p><strong>Monetary Policy Committee</strong></p>
<ul style="list-style-type: square;">
<li>It is a <strong>statutory and institutionalized framework</strong> under the<strong> Reserve Bank of India Act, 1934,</strong> for maintaining price stability, while keeping in mind the objective of growth.<br />
<ul style="list-style-type: circle;">
<li>The <strong>Governor of RBI is ex-officio Chairman</strong> of the committee.</li>
</ul>
</li>
<li>The MPC <strong>determines the policy interest rate (<a href="/daily-updates/daily-news-analysis/monetary-policy-report-rbi#:~:text=Key%20Points,lends%20money%20to%20commercial%20banks." target="_blank" rel="noopener">repo rate</a>)</strong> required to achieve the inflation target (4%).</li>
<li>An RBI-appointed committee led by the then deputy governor Urjit Patel in 2014 recommended the establishment of the Monetary Policy Committee.</li>
</ul>
</div>
<p><a href="https://www.thehindu.com/business/Economy/govt-retains-4-inflation-target-for-rbis-rate-panel-for-2021-26/article34209262.ece" target="_blank" rel="noopener"><strong>Source: TH</strong></a></p>',
		'posturl' => '4-inflation-target-retained-by-government',
		'publishon' => object(Cake\I18n\FrozenTime) {},
		'tag' => 'Growth & Development',
		'[new]' => false,
		'[accessible]' => [
			[maximum depth reached]
		],
		'[dirty]' => [[maximum depth reached]],
		'[original]' => [[maximum depth reached]],
		'[virtual]' => [[maximum depth reached]],
		'[errors]' => [[maximum depth reached]],
		'[invalid]' => [[maximum depth reached]],
		'[repository]' => 'articles'
	
	},
	(int) 19 => object(Cake\ORM\Entity) {

		'article_id' => (int) 8051,
		'category_id' => (int) 21,
		'title' => 'Economic and Social Survey of Asia and the Pacific 2021: UNESCAP',
		'description' => '<h3>Why in News</h3>
<p>A report <strong>&lsquo;Economic and Social Survey of Asia and the Pacific 2021: Towards post-Covid-19 resilient economies&rsquo;</strong> has recently been released by the <a href="/daily-updates/daily-news-analysis/survey-2019-ambitions-beyond-growth-escap#:~:text=the%20Pacific%20(UNESCAP)-,The%20United%20Nations%20Economic%20and%20Social%20Commission%20for%20Asia%20and,Asia%2DPacific%20Region%20including%20India." target="_blank" rel="noopener"><strong>United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP).</strong></a></p>
<ul style="list-style-type: square;">
<li>According to the report, <strong>India is estimated to record an economic growth of 7% in 2021-22, over <a href="/daily-updates/daily-news-analysis/india-emerged-out-of-technical-recession" target="_blank" rel="noopener">a contraction of 7.7%</a> witnessed in the previous fiscal</strong> on account of the pandemic&rsquo;s impact on normal business activity.</li>
</ul>
<h3>Key Points</h3>
<ul style="list-style-type: square;">
<li><strong>Other Observation Regarding India:</strong><br />
<ul style="list-style-type: circle;">
<li><strong>India&rsquo;s 2021 economic output, however, is expected to remain below the 2019 level</strong> despite a robust reduction in new <strong><a href="/daily-updates/daily-news-analysis/double-mutant-coronavirus-variant" target="_blank" rel="noopener">Covid-19</a></strong> cases and the start of <strong>vaccine roll-out.</strong></li>
<li>India entered the pandemic with already subdued <strong><a href="/daily-updates/daily-news-analysis/gdp-decreases-to-11-year-low" target="_blank" rel="noopener">GDP (Gross Domestic Product)</a> growth </strong>and<strong> investment.</strong><br />
<ul style="list-style-type: disc;">
<li>Moreover, one of the most stringent lockdowns in the world caused the severe economic disruptions that the country experienced in the year 2020.</li>
</ul>
</li>
<li>A subsequent <strong>change in <a href="/daily-updates/daily-news-analysis/impact-of-lockdown-on-indian-corporates" target="_blank" rel="noopener">lockdown policies</a></strong> and<strong> success in reducing infection rates</strong> supported an impressive economic turnaround in the later months of 2020.</li>
</ul>
</li>
<li><strong>Challenges:</strong> The report mentions two major challenges for India on its path to faster recovery.<br />
<ul style="list-style-type: circle;">
<li><strong>Maintaining low borrowing costs, </strong>and</li>
<li><strong>Keeping <a href="/daily-updates/daily-news-editorials/lessons-from-npa-crisis" target="_blank" rel="noopener">non-performing loans</a> in check.</strong></li>
</ul>
</li>
<li><strong>Observation Regarding Asia Pacific Countries:</strong><br />
<ul style="list-style-type: circle;">
<li>The<strong> socio-economic impact</strong> of the Covid-19 pandemic was amplified due to<strong> lack of resilience and investments</strong> in people and the planet.</li>
<li><strong>China&rsquo;s</strong> swift and effective response to Covid-19 enabled it to become the <strong>only major economy worldwide to achieve a positive annual economic growth rate in 2020.</strong></li>
<li>On an average, developing Asia-Pacific economies are expected to grow 5.9% in 2021 and 5% in 2022.</li>
<li>The prospect of a <a href="/daily-updates/daily-news-analysis/k-shaped-economic-recovery#:~:text=K%2DShaped%20Recovery%3A,industries%2C%20or%20groups%20of%20people." target="_blank" rel="noopener"><strong>K-shaped recovery</strong></a>, characterized by uneven post-pandemic recovery across countries and <strong>widened inequality gaps within countries,</strong> is highlighted as a <strong>primary policy challenge.</strong></li>
</ul>
</li>
</ul>
<div class="border-bg">
<p><strong>K-Shaped Recovery</strong></p>
<ul style="list-style-type: square;">
<li>A K-shaped recovery occurs when, following a recession,<strong> different parts of the economy recover at different rates, times, or magnitudes.</strong> This is in contrast to an even, uniform recovery across sectors, industries, or groups of people.</li>
<li>A K-shaped recovery leads to<strong> changes in the structure of the economy</strong> or the broader society as economic outcomes and relations are fundamentally changed before and after the recession.</li>
<li>This <a href="/daily-updates/daily-news-analysis/shapes-of-economic-recovery" target="_blank" rel="noopener"><strong>type of recovery</strong></a> is called K-shaped because the path of different parts of the economy when charted together may diverge, resembling the two arms of the Roman letter "K."</li>
</ul>
<p><a href="http://www.drishtiias.com/images/uploads/1617271667_image5.png" target="_blank" rel="noopener"><img class="content-img" src="http://www.drishtiias.com/images/uploads/1617271667_image5.png" style="display: block; margin-left: auto; margin-right: auto;" width="500" caption="false" /></a></p>
<ul style="list-style-type: square;"></ul>
</div>
<ul style="list-style-type: square;">
<li><strong>Suggestions:</strong><br />
<ul style="list-style-type: circle;">
<li>For a more <strong>robust and inclusive recovery,</strong> the report calls for a more <strong>synchronised Covid-19 vaccination programme</strong> across countries. There is a need to <strong>leverage regional cooperation.</strong></li>
<li>It recommends that<strong> fiscal and monetary support</strong> should be sustained, as premature tightening could increase long-term scars.</li>
<li>Continuity in <strong>policy support is a must and recovery policy packages</strong> should focus on building resilience and investing in the <a href="/to-the-points/paper3/sustainable-development-3#:~:text=To%20bring%20sustainable%20development%20in,over%20the%20next%2015%20years." target="_blank" rel="noopener"><strong>2030 Agenda for Sustainable Development.</strong></a></li>
<li>To deal with various economic and non-economic shocks, a more<strong> integrated risk management approach</strong> to planning and policymaking is needed.</li>
</ul>
</li>
</ul>
<p><a href="http://www.drishtiias.com/images/uploads/1617271755_image1.jpg" target="_blank" rel="noopener"><img class="content-img" src="http://www.drishtiias.com/images/uploads/1617271755_image1.jpg" style="display: block; margin-left: auto; margin-right: auto;" width="600" caption="false" /></a></p>
<h3>Economic and Social Survey of Asia and the Pacific</h3>
<ul style="list-style-type: square;">
<li>Produced annually <strong>since 1947,</strong> the Economic and Social Survey of Asia and the Pacific is the <strong>oldest United Nations report on the region&rsquo;s progress.</strong></li>
<li>The<strong> Survey monitors regional progress, provides cutting-edge analyses</strong> and <strong>guides policy discussion</strong> on the current and emerging socio-economic issues and policy challenges to support inclusive and sustainable development in the region.</li>
<li>Since 1957, the Survey has also contained a study or studies focusing on a significant aspect or challenge relevant to the economies of the Asia-Pacific region.</li>
<li>The Survey of 2021 studies the impact of Covid-19 pandemic and provides insights for post-Covid-19 resilient economies.</li>
</ul>
<div class="border-bg">
<p><strong>United Nations Economic and Social Commission for Asia and the Pacific</strong></p>
<ul style="list-style-type: square;">
<li>The United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP) is the <strong>regional development arm of the United Nations for the Asia-Pacific region.</strong></li>
<li>It has <strong>53 Member States and 9 Associate Members</strong> from Asia-Pacific Region including India.</li>
<li>Established: <strong>1947</strong></li>
<li>Headquarters: <strong>Bangkok,</strong> Thailand</li>
<li><strong>Objective:</strong> To overcome some of the region&rsquo;s greatest challenges by providing results-oriented projects, technical assistance and capacity building to member States.</li>
</ul>
</div>
<p><a href="https://indianexpress.com/article/business/economy/india-2021-economic-output-likely-to-remain-below-2019-level-un-report-7251473/" target="_blank" rel="noopener"><strong>Source:IE</strong></a></p>',
		'posturl' => 'economic-and-social-survey-of-asia-and-the-pacific-2021-unescap',
		'publishon' => object(Cake\I18n\FrozenTime) {},
		'tag' => 'Growth & Development',
		'[new]' => false,
		'[accessible]' => [
			[maximum depth reached]
		],
		'[dirty]' => [[maximum depth reached]],
		'[original]' => [[maximum depth reached]],
		'[virtual]' => [[maximum depth reached]],
		'[errors]' => [[maximum depth reached]],
		'[invalid]' => [[maximum depth reached]],
		'[repository]' => 'articles'
	
	}
]
$tags = [
	(int) 0 => object(Cake\ORM\Entity) {

		'id' => (int) 356,
		'tag' => 'Growth & Development',
		'colorcode' => 'FFFFFF',
		'posturl' => 'growth-&-development',
		'status' => (int) 1,
		'sort_order' => (int) 5,
		'type' => (int) 0,
		'relivant' => (float) 1,
		'metatitle' => 'Growth & Development',
		'metakeyword' => 'Growth & Development',
		'metadescription' => 'Growth & Development',
		'addedby' => (int) 9,
		'updatedby' => (int) 9,
		'added' => object(Cake\I18n\FrozenTime) {},
		'modified' => object(Cake\I18n\FrozenTime) {},
		'[new]' => false,
		'[accessible]' => [
			[maximum depth reached]
		],
		'[dirty]' => [[maximum depth reached]],
		'[original]' => [[maximum depth reached]],
		'[virtual]' => [[maximum depth reached]],
		'[errors]' => [[maximum depth reached]],
		'[invalid]' => [[maximum depth reached]],
		'[repository]' => 'tags'
	
	}
]
$title = 'Article Tags'
$lastyear = (int) 2018
$year = '2021'
$i = (int) 2017
$selected = ''
$m = (int) 13
$month = 'December'

include - ROOT/plugins/Drishti/src/Template/Element/rightsection.ctp, line 100
Cake\View\View::_evaluate() - CORE/src/View/View.php, line 1196
Cake\View\View::_render() - CORE/src/View/View.php, line 1157
Cake\View\View::_renderElement() - CORE/src/View/View.php, line 1554
Cake\View\View::element() - CORE/src/View/View.php, line 668
include - ROOT/plugins/Drishti/src/Template/Element/articlebox.ctp, line 5
Cake\View\View::_evaluate() - CORE/src/View/View.php, line 1196
Cake\View\View::_render() - CORE/src/View/View.php, line 1157
Cake\View\View::_renderElement() - CORE/src/View/View.php, line 1554
Cake\View\View::element() - CORE/src/View/View.php, line 668
include - ROOT/plugins/Drishti/src/Template/Articles/tags.ctp, line 61
Cake\View\View::_evaluate() - CORE/src/View/View.php, line 1196
Cake\View\View::_render() - CORE/src/View/View.php, line 1157
Cake\View\View::render() - CORE/src/View/View.php, line 765
Cake\Controller\Controller::render() - CORE/src/Controller/Controller.php, line 623
Cake\Http\ActionDispatcher::_invoke() - CORE/src/Http/ActionDispatcher.php, line 125
Cake\Http\ActionDispatcher::dispatch() - CORE/src/Http/ActionDispatcher.php, line 93

Achievers Corner

Prelims

Mains & Interview

Current Affairs

Drishti Specials

Free Downloads

Test Series

Videos

Tag Search Results

You searched “Growth & Development”. Your tag search matches the following results: